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Crush Company makes internal transfers at 155% of full cost The Soda Refining Division purchases 40,900 containers of carbonated water per day, on average, from
Crush Company makes internal transfers at 155% of full cost The Soda Refining Division purchases 40,900 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $44 per container via an external shipper. To reduce costs, the company located an independent supplier in Illinois who is willing to sell 40,900 containers at $34 each, delivered to Crush Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 40,900 containers at a variable cost of $7.50 per container. What is the total cost of purchasing the water from the Illinois supplier and shipping it to the Soda Division? A. $1,390,600 B. $306,750 C. $1.799,600 D. $1,697,350
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