Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.50 per unit. Its variable cost is $3.07 per unit,
The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.50 per unit. Its variable cost is $3.07 per unit, and its fixed cost per unit is $1.85. Management would like the fastener division to transfer 12,800 of these zippers to another division within the company at a price of $3.07. The fastener division could avoid $0.38 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $ (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $
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