The Alpha Division of a company,which is operating at capacity,produces and sells 1,000 units of a certain electronic component in a perfectly competitive market.Revenue and cost data are as follows: (CIA adapted) The minimum transfer price that should be charged to the Beta Division of the same company for each component is
A)$12
B)$34
C)$46
D)$50

Question

Quizplus · Accepted Answer

The minimum transfer price should be the market price when operating at capacity, which is $50.

The Alpha Division of a Company,which Is Operating at Capacity,produces