Whispering Winds Company's Small Motor Division manufactures a number of small motors used in household and office appliances.The Household Division of Whispering Winds then assembles and packages such items as blenders and juicers. Both divisions are freeto buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.Unit fixed costUnit variable costUnit selling price$6934 Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of smallmotor LN233 to the Household Division. (Round answer to 2 decimal places, eg. 10.50.)Minimum transfer priceper unit

The minimum acceptable transfer price is the lowest price at which one division of a company is…

Answered: Whispering Winds Company's Small Motor…

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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