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Nesterboy [21]
3 years ago
15

The windshield division of fast car co. makes windshields for use in fast car's assembly division. the windshield division inncu

rs variable costs of 248 per windshield and has capacity to make 590000 windshields per year. The market price is $450 per windshield. The Windshield division incurs total fixed costs of $3,000,000 per year.
Required:
Assuming the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions?
Business
1 answer:
timama [110]3 years ago
4 0
Answer and Explanation:
The possible transfer prices that could be used on transfers between the Windshield and Assembly divisions is $200 to $450.
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Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.

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For example- When a retailer purchases inventory, money flows out of the business toward their suppliers.

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A) $424,000

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The correct answer is option A.

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