Question
Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to the Restaurant Division for $35.
Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to the Restaurant Division for $35. The Food Division sells the product to customers for $90 per unit. The Food Division's variable cost per unit is $33 and its fixed cost per unit is $21.
If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?
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Evaluating The Effectiveness On Internal Audit Departments
Authors: W. Steve Albrecht, Keith R. Howe, Dennis R. Schueler, Kevin D. Stocks
1st Edition
089413177X, 978-0894131776
