Part WY4 Costs the Eastern Division of Tyble Corporation $26

Multiple Choice

Part WY4 costs the Eastern Division of Tyble Corporation $26 to make-direct materials are $10,direct labor is $4,variable manufacturing overhead is $9,and fixed manufacturing overhead is $3.Eastern Division sells Part WY4 to other companies for $30.The Western Division of Tyble Corporation can use Part WY4 in one of its products.The Eastern Division has enough idle capacity to produce all of the units of Part WY4 that the Western Division would require.What is the lowest transfer price at which the Eastern Division should be willing to sell Part WY4 to the Central Division?

A) $30
B) $26
C) $23
D) $27
E) $21