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Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $205
Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $205 in variable costs, plus the cost of the widget, to manufacture. Fern's variable costs are $80 per widget, and fixed manufacturing costs are applied at a rate of $47 per widget. Widgets sell on the open market for $125 each. Evergreen's policy is that internal transfers will be made at variable cost plus 20%. If Bark purchases the widgets from Fern, what will be the transfer price? Multiple Choice O $150.00 $152.40 $96.00
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