Management of the Catering Company would like the Food Division to transfer 10800 cans of its final product to the Restaurant Division for $95. The Food Division sells the product tocustomers for $130 per unit. The Food Division's variable cost per unit is $80 and its fixed cost per unit is $15. The Food Division is currently operating at full capacity. What is theminimum transfer price the Food Division should accept?$15$80$95$130

Transfer price of a product is equivalent to marginal cost of manufacturing one more unit, it…

Answered: Management of the Catering Company…

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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