The Wood Division of Fir Products, Inc

Multiple Choice

The Wood Division of Fir Products, Inc.manufactures rubber moldings and sells them externally for $55.Its variable cost is $25 per unit, and its fixed cost per unit is $7.Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32.
-Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is

A) $7.
B) $25.
C) $32.
D) $55.