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whats tha answer and explanation Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a
whats tha answer and explanation
Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divisions are recorded at a predetermined transfer price. Standard variable manulacturing cost per unit in the Fabeication Division is \$330. At the present time, this division is working to copacity. Fabtication estimates that the units it produces could be sold on the extemal market for $540, The product under consideration is vewed as a commodity-type product, with no differentiating features or characteristics. Required: 2. Based on the general transfer pricing rule presented in the chapter, what is the minimum transfer price between units when the Fabrication Divisjon is workine to copacity? 3. What if the Fabrication Division had excess copacity? How would this change the minimum transfer price as determined by the application of the general transfor pricing rule Step by Step Solution
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