question archive Cullumber's Division A produces a product that can be sold for $202 or transferred to Division B as a component for its product
Cullumber's Division A produces a product that can be sold for $202 or transferred to Division B as a component for its product
Subject:AccountingPrice: Bought3
Cullumber's Division A produces a product that can be sold for $202 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $182. In the current period, Division B purchased 500 units from Division A. Data on a per-unit basis follows: Division A Division B Selling price $202 $542 Variable cost 101 218 Allocated fixed cost 91 162 The variable cost in Division B does not include the cost of the component provided by Division A or the outside supplier. (a) Calculate the minimum transfer price if Division A is operating at capacity. Minimum transfer price $ $
