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 sold1,050$22,500Direct materialsDirect labour$45,350Overheads (40% variable)$37,150What transfer price per unit will result in a profit margin of 20% for Division X (to the nearest whole $)?$

Calculation of total cost : Particulars Amount Direct material $22,500 Direct labour…

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 $)? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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