Question
The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its
The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Fir’s president wants the Wood Division to transfer 5,000 units to another company division at a price of $32.
Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is
Group of answer choices
$7.
$25.
$32.
$55.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
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