Question
WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company
WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating at capacity?
A.
$140
B.
$45
C.
$55
D.
$150
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Auditing Theory And Practice
Authors: Arun Kumar & Rachana Sharma
1st Edition
8171567207, 978-8171567201
