Raphael inc has a division that manufactures a component, Accounting Basics

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Raphael inc has a division that manufactures a component

Question: Raphael, Inc. has a division that manufactures a component that sells for $190 and has a variable cost of $35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $22. What is the minimum transfer price if the division is operating below its capacity?

A) $190

B) $22

C) $35

D) $57

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Accounting Basics: Raphael inc has a division that manufactures a component

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Accounting Basics: Raphael inc has a division that manufactures a component

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