Management of the Cullumber Company would like the Food Division to transfer 10600 cans of its final product to the Restaurant Division for $70. The Food Division sells the product to customers for $210 per unit. The Food Division’s variable cost per unit is $50 and its fixed cost per unit is $20. The Food Division is currently operating at full capacity. What is the minimum transfer price the Food Division should accept? $50 $70 $20 $210
Management of the Cullumber Company would like the Food Division to transfer 10600 cans of its final product to the Restaurant Division for $70. The Food Division sells the product to customers for $210 per unit. The Food Division’s variable cost per unit is $50 and its fixed cost per unit is $20. The Food Division is currently operating at full capacity. What is the minimum transfer price the Food Division should accept? $50 $70 $20 $210
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 17E: Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside...
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Management of the Cullumber Company would like the Food Division to transfer 10600 cans of its final product to the Restaurant Division for $70. The Food Division sells the product to customers for $210 per unit. The Food Division’s variable cost per unit is $50 and its fixed cost per unit is $20. The Food Division is currently operating at full capacity. What is the minimum transfer price the Food Division should accept?
$50
$70
$20
$210
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