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A po 10 Exercise 19-31 (Static) General Transfer Pricing Rule [LO 19-4] Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly Components transferred
A po 10 Exercise 19-31 (Static) General Transfer Pricing Rule [LO 19-4] Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly Components transferred between the two divisions are recorded at a predetermined transfer price Standard variable manufacturing cost per unit in the Fabncation Division $500. At the present time, this division is working to capacity Fabrication estimates that the unsts produces could be sold on the external market for $650. The product under consideration is viewed as a commodity-type product, with no differentiating features or characteristics Required: 2. Based on the general transfer pricing rule presented in the chapter, what is the minimum transfer poce between uns when the Fabrication Division is working to capacity 3. What if the Fabrication Division had excess capacity? How would this change the minimum transfer price as determined by the application of the general transfer pricing rule Pri 2 Trans pics (capacity) Transfer prica es capacity) Help
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