Alpha and Beta are the two divisions of Calona plc. Apple manufactures a product which is sold only to the Pear division

[answerhappygod]

Alpha and Beta are the two divisions ofCalona plc. Apple manufactures a product which is sold only tothe Pear division at a unit transfer price of $820. The unit costof the product is $740 (variable cost $600 and absorbed fixedoverhead $140)
Beta has received an offer from Turnip Ltd to supply asubstitute for the product at a price of $660 per unit
Assume Alpha and Beta have spare operatingcapacity
Which statement is correct with regard to the offer fromTurnip Ltd?
A. The offer is not acceptable from the point of view ofCalona plc and the manager of Beta will make a sub-optimaldecision
B. The offer is not acceptable from the point of view ofCalona plc but the manager of Beta will not make a sub-optimaldecision
C. The offer is acceptable from the point of view ofCalona plc and the manager of Beta will make a sub-optimaldecision
D. The offer is acceptable from the point of view ofCalona plc but the manager of Beta will not make a sub-optimaldecision