Question
Crush Company makes internal transfers at 165?% of full cost. The Soda Refining Division purchases 40 comma 900 containers of carbonated water per? day, on?
Crush Company makes internal transfers at 165?% of full cost. The Soda Refining Division purchases 40 comma 900 containers of carbonated water per? day, on? average, from a local? supplier, who delivers the water for $ 50 per container via an external shipper. To reduce? costs, the company located an independent supplier in Illinois who is willing to sell 40 comma 900 containers at $ 32 ?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 comma 900 containers at a variable cost of $ 8.50 per container. What is the total cost of purchasing the water from the Illinois supplier and shipping it to the Soda? Division?
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