The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150. Assuming Burnaby Division has idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?
A) $165
B) $150
C) $152
D) $130
E) $118

Question

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The Answer of The Surrey Division of Columbia Ltd. has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150. Assuming Burnaby Division has idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?
A) $165
B) $150
C) $152
D) $130
E) $118