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Assume a manufacturer has a maximum capacity of 200,000 units and is currently operating at 90% capacity. The unit manufacturing cost follows: Sales Price $75.00
Assume a manufacturer has a maximum capacity of 200,000 units and is currently operating at 90% capacity. The unit manufacturing cost follows: Sales Price $75.00 Direct Materials 15.00 Direct Labor 12.00 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 18.00 The purchasing division (downstream) purchases the component for $70 from an outside supplier. Assume a downstream sister division has contacted the manufacturer about an order for 25,000 units. What is the minimum transfer price? (Round to nearest cent)
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