Question
Manufacturing Inc. has two divisions: Fabrication and Assembly Division. The Fabrication Division sells a partially completed component to outside buyers for further processing and assembly.
Manufacturing Inc. has two divisions: Fabrication and Assembly Division. The Fabrication Division sells a partially completed component to outside buyers for further processing and assembly. The Fabrication Division's full manufacturing costs of this component is $356, which includes $33 of applied fixed-overhead costs. The selling price to outsider buyers has been set at variable manufacturing cost plus a 49% markup. The Fabrication Division is operating at full capacity. The Assembly Division requests 100 units of this component from the Fabrication Division. What would be the minimum transfer price per unit?
a.125.27
b.530.44
c.497.44
d.448.27
e.481.27
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