
FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Question 7
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The Plastics Division of Weston Company manufactures plastic
molds and then sells them to customers for $70 per unit. Its
L Central
variable cost is $30 per unit, and its fixed cost per unit is $10.
Management would like the Plastics Division to transfer 10,000 of
these molds to another division within the company at a price of
$40. The Plastics Division has excess capacity of 10,000 units for
plastic moldings. What is the minimum transfer price that the
Plastics Division should accept?
fice 365
dges
azza
O $40.
O $30.
$10.
$70.
8:43 PM
11/18/2019
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