Question
The COB Division of Northern Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: Outside sales
The COB Division of Northern Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include:
| Outside sales price | $700 |
| Direct materials | 105 |
| Direct labour | 250 |
| Fixed overhead | 180 |
If COB is operating at full capacity and selling solely to outside customers, what price should another division pay for COB's product?
| A. | $625 | |
| B. | $700 | |
| C. | $285 | |
| D. | $480 |
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Ethics And Auditing
Authors: Tom Campbell, Keith Houghton
1st Edition
1920942254, 978-1920942250
