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
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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