ABC Company has a division that manufactures a component that sells for $35 per unit, has variable cost of $15 per unit, and fix ed cost of $5 per unit. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?
1 answer:
Answer:
$35
Step-by-step explanation:
When the selling division is operating below capacity, the minimum transfer price is variable cost per unit and when the is operating at full capacity the the transfer price must be market based.
Transfer price = variable cost + contribution
= $15+($35-$15)
= $35
You might be interested in
Answer:
its the first one those lines are just going to make it posotive basically so its true
8/1 bec ause 40 divided by 5 = 8 and 5 divided by 5 = 1
Answer:
90°
Step-by-step explanation:
You put x-5 equal to 0 and then add 5 to the other side Work: X-5=0 X=5
Answer:
450
Step-by-step explanation: