Tyler,Incis in the Process of Developing a Transfer Price for a Part

Essay

Tyler,Inc.is in the process of developing a transfer price for a part produced by Department A and used by other departments in manufacturing various products.Unit costs for the part are as follows:

Department B can purchase the part from an outside supplier at $29.50 per unit.
a.Develop the cost-plus transfer price for the part.
b.What should be the transfer price? Support your answer.