The Sliver Coast Division of Harvey Ltd Produces and Sells

Multiple Choice

The Sliver Coast Division of Harvey Ltd produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: $\begin{array}{llcc} \text { Outside salesprice} &\$640 \\ \text { Direct materials } &105\\ \text { Direct labour } &250\\ \text {Fixed overhead } &180\\\end{array}$




If the Silver Coast Division has excess capacity available to meet an internal order, what transfer price should be set?

A) $355
B) $430
C) $625
D) $285