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Minxia Company's records show the following unit costs for Division X's output: Direct material $25 Direct labour 20 Variable manufacturing overhead Fixed manufacturing overhead 10
Minxia Company's records show the following unit costs for Division X's output: Direct material $25 Direct labour 20 Variable manufacturing overhead Fixed manufacturing overhead 10 12 The units typically are transferred from Division X to Division Y, although they may be sold externally at $95 per unit. The company has a minimum acceptable profit level equal to a 25 percent markup. Beginning and ending inventories are equal to zero. What would be the transfer price if absorption cost without markup is used? Select one: a. $68.75 b. $83.75 c. $67.00 d. $55.00
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