Conference Co has a divisionalised structure. One of its divisions, Division X, sells all of its output to other divisions within the company. Division X's annual budgeted output and costs are as follows: Units sold Direct materials 1,050 $22,500 $45,350 Direct labour Overheads (40% variable) $37,150 What transfer price per unit will result in a profit margin of 20% for Division X (to the nearest whole $)? $
Conference Co has a divisionalised structure. One of its divisions, Division X, sells all of its output to other divisions within the company. Division X's annual budgeted output and costs are as follows: Units sold Direct materials 1,050 $22,500 $45,350 Direct labour Overheads (40% variable) $37,150 What transfer price per unit will result in a profit margin of 20% for Division X (to the nearest whole $)? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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