Question
Bottle Division of TJR Company makes bottles that can either be sold to outside customers or transferred internally. Last month, the Soda Division bought 3,000
Capacity 8,000 bottles
Selling Price per Bottle to Outside Customers $30
Variable Costs per Bottle Sold to Outside Customers $18
If an internal transfer is done, the company can save $1.50 on administrative expenses. An outside supplier has offered to supply bottles to the Soda Division for $25 each.
If 7,000 bottles can be sold externally, what is the transfer price range?
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Managerial Accounting An Integrative Approach
Authors: C J Mcnair Connoly, Kenneth Merchant
2nd Edition
099950049X, 978-0999500491
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