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Marrrta [24]
3 years ago
9

A division can sell externally for $40 per unit. Its variable manufacturing costs are $15 per unit, and its variable marketing c

osts are $6 per unit. The variable marketing costs can be avoided if the units are transferred internally. What is the opportunity cost of transferring internally, assuming the division is operating at capacity
Business
1 answer:
Anni [7]3 years ago
6 0

Answer:

$19

Explanation:

The opportunity cost of transferring internally is the lost contribution of selling the units externally.

<em>Contribution = Sales - Variable Costs</em>

where,

Sales = $40

Variable Costs = $15 + $6 = $21

therefore,

Lost Contribution =  $40 - $21 = $19

Conclusion

the opportunity cost of transferring internally is $19.

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Explanation:

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In 1895, the first u.s. open golf championship was held. the winner's prize money was $150. in 2010, the winner's check was $1,3
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We will examine the annual growth rate of the following question.

Formula for calculating the annual growth rate is Growth Percentage Over One year =[ (F÷S) ¹/y - 1] ₓ 100

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