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Can someone please help me with this, need it asap, thank you. Darrin's Auto Northern Division is currently purchasing a part from an outside supplier.
Can someone please help me with this, need it asap, thank you.
Darrin's Auto Northern Division is currently purchasing a part from an outside supplier. The company's Southern Division, which has no excess capacity, makes and sells this part for external customers at a variable cost of $29 and a selling price of $41. If Southern begins sales to Northern, it (1) will use the general transfer pricing rule and (2) will be able to reduce variable cost on internal transfers by $3. On the basis of this information, Southern would establish a transfer price of: (8 4607) Multiple Choice None of the answers is correctStep by Step Solution
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