Division 1 does not have excess capacity to produce Product Y. The division can sell Product Y for $10 per unit outside the company. Variable costs are $6 per unit. Division 2 wants to purchase Product Y from Division 1 to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product Y for $12 per unit. What is the maximum price Division 2 will pay for Product Y?$12 per unit$13 per unit$25 per unitNone of these
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