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The machining division has a capacity of 4.200 units. Its sales and cost data are: (a) The machining division currently sells 1,700 units to outside
The machining division has a capacity of 4.200 units. Its sales and cost data are: (a) The machining division currently sells 1,700 units to outside customers, and the assembly division wants to purchase 800 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, not $11 /unit. What should be the transfer price in order not to affect its current profit? The machining division currently sells 1.700 units to outside customers, and the assembly division wants to purchase 800 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0 /unit, not $11/ unit. What should be the transier price in order not to affect its current profit
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