The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed cost per unit is $8. Vaughn’s president wants the Wood Division to transfer 4300 units to another company division at a price of $21. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $45. $25. $21. $8.
The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed cost per unit is $8. Vaughn’s president wants the Wood Division to transfer 4300 units to another company division at a price of $21. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $45. $25. $21. $8.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
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The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed cost per unit is $8. Vaughn’s president wants the Wood Division to transfer 4300 units to another company division at a price of $21.
Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is
$45.
$25.
$21.
$8.
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