Joliet Division makes a good that is sold on the open market for a price of $31 each. To make the product, Joliet inours $8 of variable cost per unit and $12 of fixed costs per unit. The Chicago Division is looking to buy this good internally from Jollet. What is the minimum unilt price (floor) on an internal transfer to the Chicago Division? S What is the maximum unit price (ceiling) for the transfer of the good? S
Joliet Division makes a good that is sold on the open market for a price of $31 each. To make the product, Joliet inours $8 of variable cost per unit and $12 of fixed costs per unit. The Chicago Division is looking to buy this good internally from Jollet. What is the minimum unilt price (floor) on an internal transfer to the Chicago Division? S What is the maximum unit price (ceiling) for the transfer of the good? S
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Joliet Division makes a good that is sold on the open market for a price of $31 each. To make
the product, Joliet inours $8 of variable cost per unit and $12 of fixed costs per unit. The
Chicago Division is looking to buy this good internally from Joliet.
What is the minimum unit price (floor) on an internall transfer to the Chicago Division? S
What is the maximum unit price (ceilling) for the transfer of the good? S
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