Question
Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 per unit. The variable cost per
Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 per unit. The variable cost per unit is $55, and fixed costs per unit are $16. Top management of Dudge Cars would like Freberg to transfer 30,000 special, high-performance batteries to another division within the company. Frebergs variable cost on these special batteries is $62 per unit. Freberg is operating at full capacity. (I need help with this one, both answers of $92 and $55 were incorrect and i only have one attempt remaining to get it right. Thank you .) Compute the minimum transfer price that Freberg should accept.
Minimum transfer price | $Type your answer here |
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I also need help with this one
The Heating Division of Kobe International produces a heating element that it sells to its customers for $39 per unit. Its variable cost per unit is $21, and its fixed cost per unit is $7. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $32. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?
Minimum transfer price ($enter the minimum transfer price in dollars )
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