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The Transferring Division of Pricey Corporation has variable costs of $25 per unit and fixed costs of $10 per unit. The market price for Transferring
The Transferring Division of Pricey Corporation has variable costs of $25 per unit and fixed costs of $10 per unit. The market price for Transferring Divisions goods is $50 per unit. Transferring Division sells its goods for $27 per unit. This would be an acceptable:
- Short-run price for external customers
- Long-run price for external customers
- Transfer price (no matter what)
- Transfer price (but only if there is unlimited demand on the market)
- Transfer price (but only if there is no demand on the market)
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