Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish...

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Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish them additional spools of thread that could be made using the excess capacity. In a negotiated transfer price, the Thread Division should accept as a minimum any transfer price that exceeds the: O Total cost of producing spools for outside sales. O Forgone contribution margin on outside spool sales. O Fixed costs of producing the additional spools for the Garment Division. O Variable costs of producing the additional spools for the Garment Division O None of the above Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish them additional spools of thread that could be made using the excess capacity. In a negotiated transfer price, the Thread Division should accept as a minimum any transfer price that exceeds the: O Total cost of producing spools for outside sales. O Forgone contribution margin on outside spool sales. O Fixed costs of producing the additional spools for the Garment Division. O Variable costs of producing the additional spools for the Garment Division O None of the above

Answer rating: 100% (QA)

Correct answer dVariable cost of producing the additional spools f... View the full answer