WAX-D Inchas a Division That Manufactures a Component That Sells for for $150

Multiple Choice

WAX-D Inc.has a division that manufactures a component that sells for $150 and has a variable cost of $45.Another division of the company wants to purchase the component.Fixed cost per unit of component is $25.What is the minimum transfer price if the division is operating below its capacity?

A) $50
B) $45
C) $70
D) $40