Question
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the market-based transfer price?
- Variable cost per unit $7
- Fixed cost per unit 1.05
- Division B sales price of Component X 14.5
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the cost-based transfer price?
- Variable cost per unit $7.34
- Fixed cost per unit 1.76
- Division B sales price of Component X 14.5
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the full-cost-based transfer price?
- Variable cost per unit $6.92
- Fixed cost per unit 1.99
- Division B sales price of Component X 14.5
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Linear Algebra And Its Applications
Authors: David Lay, Steven Lay, Judi McDonald
6th Global Edition
9781292351216
