Delemos Products, Inc., has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter. Data concerning that transmitter appear below: Capacity in units 83,000Selling price to outside customers$98Variable cost per unit$60Fixed cost per unit (based on capacity)$24?The Remote Devices Division of Delemos Products, Inc needs 6,000 special heavy-duty transmitters per year. The Transmitter Division's variable cost to manufacture and ship this special transmitter would be $66 per unit. Because these special transmitters require more manufacturing resources than the standard transmitter, the Transmitter Division would have to reduce its production and sales of standard transmitters to outside customers from 83,000 units per year to 76,400
units per year.?From the standpoint of the Transmitter Division, what is the minimal acceptable transfer price for the special transmitters for the Remote Devices Division?
A. $104.00 per unit
B. $90.00 per unit
C. $107.80 per unit
D. $98.00 per unit
Answer: C
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