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Hill, Inc., requires that any transfers that occur take place at full manufacturing cost. However, division managers may agree to refuse to transfer at that
Hill, Inc., requires that any transfers that occur take place at full manufacturing cost. However, division managers may agree to refuse to transfer at that price.
1. | What is the full cost transfer price? (Round your answer to the nearest cent.) |
Use the Interactive Graph to answer the following questions:
3. | Suppose that the Parts Division agrees to sell the component to the Appliance Division for full manufacturing cost. No other costs will change. |
What is the benefit to the Parts Division of that transfer price? | |
To the Appliance Division? |
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