Avery Company has two divisions, Polk and Bishop Polk produces an item that Bishop could use in its production Bishop currently is purchasing 24,000 units from an outside supplier for $15 per unit Polk is currently operating at less than its full capacity of 630,000 units and has variable costs of $7 per unit The full cost to manufacture the unit is $12 Polk currently sells 440,000 units at a selling price of $19 per unit a What will be the effect on Avery Companys operating profit if the transfer is made internally b What is the minimum transfer price from Polks perspective c What is the maximum transfer price from Bishops perspective

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Avery Company has two divisions, Polk and Bishop  Polk produces an item that Bishop could use in its production  Bishop currently is purchasing 24,000 units from an outside supplier for $15 per unit  Polk is currently operating at less than its full capacity of 630,000 units and has variable costs of $7 per unit  The full cost to manufacture the unit is $12  Polk currently sells 440,000 units at a selling price of $19 per unit  a  What will be the effect on Avery Companys operating profit if the transfer is made internally  b  What is the minimum transfer price from Polks perspective  c  What is the maximum transfer price from Bishops perspective

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Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in

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Financial and Managerial Accounting the basis for business decisions

Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in

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Financial and Managerial Accounting the basis for business decisions

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