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c.ru On Track Log in to your Refug... Log in - WES.org English (en) TRU Moodle Alpha International Corporation has two divisions, beta and gamma.
c.ru On Track Log in to your Refug... Log in - WES.org English (en) TRU Moodle Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 200,000 units: Determine minimum transfer price. $25 Direct materials 15 Direct labour 5 Variable overhead 10 Fixed overhead Beta is operating at 75% of normal capacity and gamma is purchasing 15,000 units of the same component from an outside supplier for $70 per unit. Instructions a. Calculate the benefit, if any, to beta in selling to gamma 15,000 units at the outside supplier's price. Answer as $/Unit b. Calculate the lowest price beta would be willing to accept. Answer as $/Unit If beta is operating at full capacity, what would be the lowest transfer price that beta division is willing to accept? Answer as $/Unit C
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