Suppose Division B could use the excess capacity to produce and sell externally 19,000 units of a new product at a price of $7.72 per unit. The variable cost for this new product is $6.08 per unit. What should be the minimum transfer price accepted by Division B for the 10,500 lamps and the maximum transfer price paid by Division A?

Suppose Division B could use the excess capacity to produce and sell externally 19,000 units of a new product at a price of $7.72 per unit. The variable cost for this new product is $6.08 per unit. What should be the minimum transfer price accepted by Division B for the 10,500 lamps and the maximum transfer price paid by Division A?

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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