The Wood Division of Wildhorse Products Inc. manufactures wood mouldings and sells them externally for $200. Its variable cost is $58 per unit, and its fixed cost per unit is $13. v's president wants the Wood Division to transfer 4900units to another company division at a price of $71. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $13. $71. $58. $200.
The Wood Division of Wildhorse Products Inc. manufactures wood mouldings and sells them externally for $200. Its variable cost is $58 per unit, and its fixed cost per unit is $13. v's president wants the Wood Division to transfer 4900units to another company division at a price of $71. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $13. $71. $58. $200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Wood Division of Wildhorse Products Inc. manufactures wood mouldings and sells them externally for $200. Its variable cost is $58 per unit, and its fixed cost per unit is $13. v's president wants the Wood Division to transfer 4900units to another company division at a price of $71.
Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is
Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is
$13.
$71.
$58.
$200.
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