Segment X sells its product at SP of 300 per unit. Variable Cost to produce per unit is 120 per unit. Fixed cost is 100,000. X operates at full capacity. What is the minimum price that should be charged to another segment for each unit of product to be transferred? • 120 plus allocated cost of FC • 120 plus opportunity cost and other variable cost • 300 • 120

Segment X sells its product at SP of 300 per unit. Variable Cost to produce per unit is 120 per unit. Fixed cost is 100,000. X operates at full capacity. What is the minimum price that should be charged to another segment for each unit of product to be transferred? • 120 plus allocated cost of FC • 120 plus opportunity cost and other variable cost • 300 • 120

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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