The machining division of Cullumber International has a capacity of 2.480 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 Minimum transfer price 85 S 30 7 The machining division is currently selling 2.280 units to outside customers, and the assembly division of Cullumber International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be 50/unit, and not $7/unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places eg 5.25) 213,700

The machining division of Cullumber International has a capacity of 2.480 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 Minimum transfer price 85 S 30 7 The machining division is currently selling 2.280 units to outside customers, and the assembly division of Cullumber International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be 50/unit, and not $7/unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places eg 5.25) 213,700

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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