Business Unit A, the supplying business unit, is selling to an outside market. It has excess capacity and can use it to transfer product to the receiving business unit, Business Unit B. Business Unit A does not incur incremental fixed costs in the production of the units supplied to Business Unit B. The formula to calculate the transfer price in this scenario is:? a. (Total variable costs + incremental fixed cost) ÷ total units supplied b. (Total variable costs + Contribution margin lost) ÷ total units supplied c. (Total variable costs + incremental fixed costs + Contribution margin lost) ÷ total units supplied d. Total variable costs ÷ total units supplied

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