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Division U of UC Co. makes a product BCF that can either be sold to outside customers or transferred internally to Division C for
Division U of UC Co. makes a product BCF that can either be sold to outside customers or transferred internally to Division C for further processing. Annual data relating to BCF are as follows: Annual production capacity 900,000 units Selling price of the item to outside customers $360 Variable cost per unit $240 Fixed cost per unit $55 Division C of the UC Co. needs 150,000 units of BCF per year and is currently paying an outside supplier $330 per unit. What is the lowest acceptable transfer price from the viewpoint of division U if outside customers demand 900,000 units and if, by selling to Division C, Division U could avoid Php40 per unit in variable selling expense,? O Php240 O Php330 O Php320 O Php360
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