Figure 5 Allied Industries Has Two Divisions: the Bradley Division and the and the Rommel

Figure 5
Allied Industries has two divisions: the Bradley Division and the Rommel Division. Information about the component that the Bradley Division produces is as follows:
The Bradley Division can produce up to 12,000 components per year. The Rommel Division needs 800 units of the component for a product it manufactures
-Refer to Figure 5 above. If the selling division did NOT have excess capacity, the minimum transfer price the selling division would be willing to accept would be

A) £50
B) £80
C) £130
D) £180

Correct Answer:

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