FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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cussions
Question 7
-/1
ferences
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aborations
Current Attempt in Progress
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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
Chp
n
ins
prt sc
home
no
end
pg up
delete
44
backspace
lock
P
home
expand button
Transcribed Image Text:cussions Question 7 -/1 ferences View Policies aborations Current Attempt in Progress eyPLUS Support 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 Chp n ins prt sc home no end pg up delete 44 backspace lock P home
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