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Almond Delights is a farm that harvests almonds and then sells them to both external customers and to some internal business units when the deal
Almond Delights is a farm that harvests almonds and then sells them to both external customers and to some internal business units when the deal makes fiscal sense. Almond Delights' Farm business unit is having a very successful year and provided the following information: Sales (167,300 pounds of almonds) Direct Materials Direct labor Variable overhead Fixed expenses $260,988 15,460 39,245 60,732 90,428 The Almond Milk business unit of Almond Delights would like to purchase an additional 13,490 pounds of almonds from the Farm business unit. If Almond Delights Farm business unit is not operating at full capacity and has the ability to produce all of the additional units, then what will the minimum acceptable transfer price be to sell to the Almond Milk business unit? O $0.87 per pound O $0.33 per pound O $0.69 per pound O $1.56 per pound
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