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What is the minimum transfer price from Division A to B

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Problem - Avery Corporation presented the following information for its three divisions for the past month. Divisions A and B are manufacturing divisions, whereas Division C is distribution.

Production level of A

Significantly below capacity

Sales price to Division C

$50 per unit

Division A's variable cost

$20 per unit

Total fixed costs (Division A and B)

$120,000

Division C's marketing cost

10% of sales price

Division C's sales price

Market Value

What is the minimum transfer price from Division A to Division B?

A. $10

B. $20

C. $30

D. $50

Reference no: EM132453187

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