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Division are assumed to be the same over the range of 6 , 0 0 0 - 1 1 , 0 0 0 units. The
Division are assumed to be the same over the range of units. The fixed costs for the Fabrication Division are assumed to be $ per unit at units.
Compressor's costs per compressor are:
Direct materials $
Direct labor $
Variable overhead $
Division fixed costs $
Fabrication's costs per completed air conditioner are:
Direct materials $
Direct labor $
Variable overhead $
Division fixed costs $
What is the transfer price per compressor from the Compressor Division to the Fabrication Division if the method used to place a value on each compressor is of variable costs?
A $
B $
C $
D $
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