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2) Alexia Corporation has two divisions, Refining and Extraction. The company's primary product is to roll ol. Each division's costs are provided below: Extraction: Variable
2) Alexia Corporation has two divisions, Refining and Extraction. The company's primary product is to roll ol. Each division's costs are provided below: Extraction: Variable costs per barrel of oil Fixed costs per barrel of oil Variable costs per barrel of oil Fixed costs per barrel of all 513 56 $26 536 Refining The Refining Division has been operating at a capacity of 40,800 barrels a day and usually purchases 25.600 barrels of all from the Extraction Division and 15.100 barrels from other suppliers at 562 per barrel, Compute the transfer price per barrel from the Extraction Division to the Refining Division, assuming the method used to place a value on each barrel of oil is 110 of full costs
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