Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlun could use in its production. Quail's variable costs are $5.80 per widget while the full cost is $8.80. Widgets sell on the open market for $15.6 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin is purchasing 190000 units on the open market?   a) $5.8 b) $8.8 c) $15.6 d) $6.8

Principles of Accounting Volume 2
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Chapter10: Short-term Decision Making
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Problem 2PA: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlun could use in its production. Quail's variable costs are $5.80 per widget while the full cost is $8.80. Widgets sell on the open market for $15.6 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin is purchasing 190000 units on the open market?

 
a) $5.8
b) $8.8
c) $15.6
d) $6.8 
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