he Wood Division of Sheridan Company manufactures rubber moldings and sells them externally for $55. Its variable cost is $38 per unit, and its fixed cost per unit is $5. Sheridan’s president wants the Wood Division to transfer 4300 units to another company division at a price of $23. Assuming the Wood Division has available capacity of 4300 units, the minimum transfer price it should accept is $5. $23. $38. $55.
he Wood Division of Sheridan Company manufactures rubber moldings and sells them externally for $55. Its variable cost is $38 per unit, and its fixed cost per unit is $5. Sheridan’s president wants the Wood Division to transfer 4300 units to another company division at a price of $23. Assuming the Wood Division has available capacity of 4300 units, the minimum transfer price it should accept is $5. $23. $38. $55.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Wood Division of Sheridan Company manufactures rubber moldings and sells them externally for $55. Its variable cost is $38 per unit, and its fixed cost per unit is $5. Sheridan’s president wants the Wood Division to transfer 4300 units to another company division at a price of $23.
Assuming the Wood Division has available capacity of 4300 units, the minimum transfer price it should accept is
$5.
$23.
$38.
$55.
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