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WAX-D Inc. has a division that manufactures a component that sells in the open market for $150 and has a variable cost of $45. Fixed
WAX-D Inc. has a division that manufactures a component that sells in the open market for $150 and has a variable cost of $45. Fixed cost per unit of component is $25. Another division of the company wants to purchase the component. What is the transfer price if the manuafacturing division is operating at capacity?
a. $55 | ||
b.$45 | ||
c. $150 | ||
d. $140 |
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