In the GPK Coffee Company, the Strudel Division has strudel that can be sold either to...
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In the GPK Coffee Company, the Strudel Division has strudel that can be sold either to outside customers or to the Bean Division that also sells coffee. Information about these divisions is given below: Strudel Division: Case 1 Case 2 Capacity in units of strudel 1,000 1,000 Number of units sold or demanded externally 600 1,000 Market selling price $2.00 $1.50 Avoidable outlay costs per unit $1.50 $1.30 Unavoidable costs per unit based on capacity $0.20 $0.20 Bean Division: Number of units of strudel needed 400 400 Budgeted price per unit $1.95 $1.45 Given the facts in case 1, what are the minimum and maximum transfer prices? In the GPK Coffee Company, the Strudel Division has strudel that can be sold either to outside customers or to the Bean Division that also sells coffee. Information about these divisions is given below: Strudel Division: Case 1 Case 2 Capacity in units of strudel 1,000 1,000 Number of units sold or demanded externally 600 1,000 Market selling price $2.00 $1.50 Avoidable outlay costs per unit $1.50 $1.30 Unavoidable costs per unit based on capacity $0.20 $0.20 Bean Division: Number of units of strudel needed 400 400 Budgeted price per unit $1.95 $1.45 Given the facts in case 1, what are the minimum and maximum transfer prices?
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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