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Transfer pricing following information is available about product #54B89: Determine the transfer price under each of the following methods Transfer pricing Elba Division of Haimes
Transfer pricing following information is available about product \#54B89: Determine the transfer price under each of the following methods
Transfer pricing Elba Division of Haimes Industries manufactures product #54B89. Three-fourths of the production is transferred to the Crete Division of Haimes Industries; the remainder is sold externally for $67 per unit. The following information is available about product #54B89: Total production annually Variable production costs Variable selling costs (includes $4 per unit in advertising cost) units $16 Fixed overhead (allocated on the basis of units of production) $4,680,000 Fixed selling costs Determine the transfer price under each of the following methods: (2) (3) (4) total variable cost full production cost total variable production cost plus allocated fixed selling costs market price 56 41 .5 42 67 X X per unit per unit per unit per unit
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