A division can sell externally for $40 per unit. Its variable manufacturing costs are $15 per unit, and its variable marketing costs are $6 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?
A) $15.
B) $19.
C) $21.
D) $25.

Question

Quizplus · Accepted Answer

The Answer of A division can sell externally for $40 per unit. Its variable manufacturing costs are $15 per unit, and its variable marketing costs are $6 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?
A) $15.
B) $19.
C) $21.
D) $25.

A Division Can Sell Externally for $40 Per Unit