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a division can sell externally for $60 per unit. Is variable manufacturing costs are $35 per...

a division can sell externally for $60 per unit. Is variable manufacturing costs are $35 per unit, and its variable marketing costs are $12 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?

a. $35

b. $47

c. $25

d. $13

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Answer #1

opportunity cost of transferring internally, assuming the division is operating at capacity

= Contribution margin per unit

= 60 - (35+12)

= 60 - 47

= 13
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