Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. If Division A is currently selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division A if it were to sell 5,000 units to the other division? Multiple Choice O о $78.00 $88.00 $91.00 $ 101.00 $68.00 $ 10.00 30,000 $81.20
Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. If Division A is currently selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division A if it were to sell 5,000 units to the other division? Multiple Choice O о $78.00 $88.00 $91.00 $ 101.00 $68.00 $ 10.00 30,000 $81.20
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 14E: A company has prepared the following statistics regarding its production and sales at different...
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![Assume Division A has provided the following information regarding the one
product that it manufactures and sells on the outside market:
Selling price per unit (on the outside market)
Variable cost per unit
Fixed costs per unit (based on capacity)
Capacity in units
Division A has been offered the opportunity to sell 5,000 units of its only
product to another division within the same company. If Division A is currently
selling 27,000 units on the outside market, what is the lowest acceptable
transfer price for Division A if it were to sell 5,000 units to the other division?
Multiple Choice
O
о
O
O
$78.00
$88.00
$91.00
$ 101.00
$68.00
$ 10.00
30,000
$81.20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F581e5b14-54e4-46ae-aebe-3d2317b123b3%2F5398963a-e53c-4381-86c0-c9b0b6f53116%2F964c8jh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume Division A has provided the following information regarding the one
product that it manufactures and sells on the outside market:
Selling price per unit (on the outside market)
Variable cost per unit
Fixed costs per unit (based on capacity)
Capacity in units
Division A has been offered the opportunity to sell 5,000 units of its only
product to another division within the same company. If Division A is currently
selling 27,000 units on the outside market, what is the lowest acceptable
transfer price for Division A if it were to sell 5,000 units to the other division?
Multiple Choice
O
о
O
O
$78.00
$88.00
$91.00
$ 101.00
$68.00
$ 10.00
30,000
$81.20
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