Question
MNO Division currently produces and sells 55,000 units each month to other companies at an average selling price of $15 per unit. MNO has an
MNO Division currently produces and sells 55,000 units each month to other companies at an average selling price of $15 per unit. MNO has an overall capacity to produce 100,000 units per month.
Required:1. What is the minimum transfer price for MNO Division? Show calculations. (2 marks)
2. What is the maximum transfer price for XYZ Division?Show calculations. (2 marks)
3. What would be in the best interest for the overall company? Explain. (2 marks)
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Fundamentals Of Advanced Accounting
Authors: Joe Ben Hoyle
8th Edition
1260575926, 978-1260575927
