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 $)? $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
1,050
$22,500
Direct materials
Direct labour
$45,350
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 $)?
$
Transcribed Image Text: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 1,050 $22,500 Direct materials Direct labour $45,350 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 $)? $
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