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Social SciencecussionsQuestion 7-/1ferencesView PoliciesaborationsCurrent Attempt in ProgresseyPLUS SupportThe Plastics Division of Weston Company manufactures plasticmolds and then sells them to customers for $70 per unit. ItsL Centralvariable cost is $30 per unit, and its fixed cost per unit is $10.Management would like the Plastics Division to transfer 10,000 ofthese molds to another division within the company at a price of$40. The Plastics Division has excess capacity of 10,000 units forplastic moldings. What is the minimum transfer price that thePlastics Division should accept?fice 365dgesazzaO $40.O $30.$10.$70.8:43 PM11/18/2019Chpninsprt schomenoendpg updelete44backspacelockPhome
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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
Expert Answer
Transfer pricing:
It refers to the pricing strategy of the product which is transferred within the compa...
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