The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70 per unit. Its variable cost per unit is $30 per unit, and its fixed cost per unit is$10, Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company. The Plastics Division has available capacity of 10,000 units. What is the minimum transfer price that the Plastics Division should accept? $70 $10 $40 $30
The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70 per unit. Its variable cost per unit is $30 per unit, and its fixed cost per unit is$10, Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company. The Plastics Division has available capacity of 10,000 units. What is the minimum transfer price that the Plastics Division should accept? $70 $10 $40 $30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Plastics Division of Weston Company manufactures plastic molds and then sells
them to customers for $70 per unit. Its variable cost per unit is $30 per unit, and its
fixed cost per unit is $10, Management would like the Plastics Division to transfer
10,000 of these molds to another division within the company. The Plastics Division
has available capacity of 10,000 units. What is the minimum transfer price that the
Plastics Division should accept?
$70
$10
$40
$30
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