The machining division has a capacity of 4,300 units. Its sales and cost data are: Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead (a) Minimum transfer price $ $161 Save for Later 54 11 The machining division currently sells 1,600 units to outside customers, and the assembly division wants to purchase 900 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, not $11/unit. What should be the transfer price in order not to affect its current profit? 110,200 Attempts: 0 of 1 used Submit Answer
The machining division has a capacity of 4,300 units. Its sales and cost data are: Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead (a) Minimum transfer price $ $161 Save for Later 54 11 The machining division currently sells 1,600 units to outside customers, and the assembly division wants to purchase 900 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, not $11/unit. What should be the transfer price in order not to affect its current profit? 110,200 Attempts: 0 of 1 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The machining division has a capacity of 4,300 units. Its sales and cost data are:
Selling price per unit
Variable manufacturing costs per unit
Variable selling costs per unit
Total fixed manufacturing overhead
(a)
Minimum transfer price $
$161
Save for Later
54
11
The machining division currently sells 1,600 units to outside customers, and the assembly division wants to purchase 900 units
from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be
$0/unit, not $11/unit. What should be the transfer price in order not to affect its current profit?
110,200
Attempts: 0 of 1 used
Submit Answer
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