What is the minimum transfer price per hour that the repair division should obtain for its services,assuming it is operating at capacity?
A)$33.00
B)$37.00
C)$45.00
D)$70.00
E)$82.00

Question

Quizplus · Accepted Answer

The minimum transfer price should cover the opportunity cost of using the division's capacity. If the division is operating at capacity, the opportunity cost is the revenue it would earn from external customers, which is $70.00 per hour.

What Is the Minimum Transfer Price Per Hour That the Repair