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Which of the amount will be set as transfer price

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Question - The "Pedal" division of 'Avon Cycles' manufactures one type of Pedals which is sold to external customers for 60 each. Its fixed Cost per Pedal is 20.50, and its variable cost is 12.50. Avon's top management asks the Pedal division to transfer 10,000 Pedals to another division within the company. Which of the following amount will be set as transfer price if the transfer is made at 'Market Price' of the Pedal division?

A. 60

B. 20.50

C. 12.50

D. 80.50

Reference no: EM133184458

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