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Alava Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by
Alava Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and is sold to customers at a price of $180 per unit. The mining division is currently required by Alava to transfer its total yearly output of 255,000 units of toldine to the metals division at 110% of full manufacturing cost. Unlimited quantities of toldine can be purchased and sold on the outside market at $95 per unit. The following table gives the manufacturing cost per unit in the mining and metals divisions for the year: (Click to view the data.) Required
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