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. The Eastern Division can sell all of Part WY4 they can make to other companies for $30. The Western Division of Tyble Corporation can use Part WY4 in one of its products. What is the lowest transfer price at which the Eastern Division would be willing to sell Part WY4 to the Central Division?

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