Current outside sales is 7,500 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 and that a cost of P1 per unit will be saved from the transfer. _____________________
The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is
10,000 units. Fixed costs per unit are P4. Current outside sales is 7,500 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units
will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the
same from outside market at P18.50 and that a cost of P1 per unit will be saved from the
transfer. _____________________
5. The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is
10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the
maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units
will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the
same from outside market at P18.50. _____________________
6. The Selling Division’s unit sales price is P19 and its unit variable cost is P10. Its capacity is
10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the
maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units
will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the
same from outside market at P18.50 and that a cost of P1 per unit will be saved from the
transfer
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