Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 19 of 28K Question 19 10 points Sunfyre's Bakery Division is currently purchasing organic heavy cream from an outside supple. The company's Dairy
Question 19 of 28K Question 19 10 points Sunfyre's Bakery Division is currently purchasing organic heavy cream from an outside supple. The company's Dairy Division, which has no excess capacity makes and sells organic heavy cream for extema customers at a variable cost of $25 per gallon and a selling price of $97 per gallon. If the Dairy Division begins sales to the Bakery Division, it will use the general transfer-pricing nuw and will be able cost on internal transfer by $13 per gallon. How much is the minimum transfer price per gallon that the Dairy Division should establish? (Do not round intermediate calculations Round the final answer to the nearest two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started