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10. The fastener division of Sheridan Fasteners manufactures zippers and sells them... Can you please answer A and B? The fastener division of Sheridan Fasteners
10. The fastener division of Sheridan Fasteners manufactures zippers and sells them...
The fastener division of Sheridan Fasteners manufactures zippers and then sells them to customers for $7.31 per unit. Its variable cost is $3.40 per unit, and its fixed cost per unit is $1.09. Management would like the fastener division to transfer 12,400 of these zippers to another division within the company at a price of $3.40. The fastener division could avoid $0.15 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimol ploces, eg. 10.50 ) Minimum transfer price (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal ploces, es. 10.50) Minimum transfer price Can you please answer A and B?
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