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Chapter 13 HW Navigation 1 2 3 Finish attempt ... Question 2 Partially correct Mark 3.00 out of 4.00 Flag question Transfer pricing eBook
Chapter 13 HW Navigation 1 2 3 Finish attempt ... Question 2 Partially correct Mark 3.00 out of 4.00 Flag question Transfer pricing eBook Print Elba Division of Haimes Industries manufactures product #54B89. Three-fourths of the production is transferred to the Crete Division of Haimes Industries; the remainder is sold externally for $67 per unit. The following information is available about product #54B89: Total production annually Variable production costs Variable selling costs (includes $4 per unit in advertising cost) 1,200,000 units $40 $16 Fixed overhead (allocated on the basis of units of production) $3,960,000 Fixed selling costs $5,280,000 Determine the transfer price under each of the following methods: (1) total variable cost $ 56 per unit (2) full production cost 43.3 per unit (3) total variable production cost plus allocated fixed selling costs $ (4) market price 44.4 x per unit 67 per unit Check
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