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This was incorrectly answered last time. manufactures only one type of product and has two divisions: Assembly and Packaging. The Assembly Division manufactures units for
This was incorrectly answered last time.
manufactures only one type of product and has two divisions: Assembly and Packaging. The Assembly Division manufactures units for the Packaging Division, which completes the units and sells them to retailers. Currently all the Assembly's work is transferred internally to the Packaging Division, however an intermediate market price for an unpackaged assembled unit equals $50.00. The current capacity for Cheng Company is 5,000 units. Darlanina'e rncte unit ara. Assume the internal transfer price for a unit is 150% of total costs of the Assembly Division and 1,000 of the units are produced and transferred to the Packaging Division. Calculate the Assembly Division's Operating Income using the current transfer pricing method
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