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Division A produces a product that it sells to the outside market. It has compiled the following: $10 $3 $168000 Variable manufacturing cost per unit
Division A produces a product that it sells to the outside market. It has compiled the following: $10 $3 $168000 Variable manufacturing cost per unit Variable selling costs per unit Total fixed manufacturing costs Total fixed selling costs Per unit selling price to outside buyers Capacity in units per year $30000 $46 30000 Division B of the same company is currently buying an identical product from an outside provider for $43 per unit. It wishes to purchase 6000 units per year from Division A. Division A is currently selling 25000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the minimum transfer price per unit that Division A would be willing to accept? $14.50 $15.50 $46.00 $10.00 Division A produces a product that it sells to the outside market. It has compiled the following: Variable manufacturing cost per unit $8 Variable selling costs per unit $3 Total fixed manufacturing costs $145000 Total fixed selling costs $30000 Per unit selling price to outside buyers $46 Capacity in units per year 30000 Division B of the same company is currently buying an identical product from an outside provider for $44 per unit. It wishes to purchase 5300 units per year from Division A. Division A is currently selling 30000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the minimum transfer price per unit that Division A would be willing to accept? $46 $8 O $9 O $44
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