Business, 12.04.2021 22:00 marisolrojo2002

The Eastern Division of Promising Products makes and sells a single product, which is a part used in manufacturing toys. The annual production capacity is 25,000 units and the variable cost of each unit is $22. Presently the Eastern Division sells 22,000 units per year to outside customers at $35 per unit. The Central Division of Promising Products would like to buy 13,000 units a year from Eastern to use in its production. There would be no savings in variable costs from transferring the units internally rather than selling them externally. The lowest acceptable transfer price from the standpoint of the Eastern Division should be closest to:

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The Eastern Division of Promising Products makes and sells a single product, which is a part used in...

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