Division A has variable manufacturing costs of $53 per unit and fixed costs of $14 per unit.
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Division A has variable manufacturing costs of $53 per unit and fixed costs of $14 per unit. Assuming that Division A is operating significantly below capacity, what is the optimal transfer price of an internal transfer when the market price is $80?
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Division B has variable manufacturing costs of $58 per unit and fixed costs of $14 per unit. Assuming that Division B is operating significantly below capacity, what is the opportunity cost of an internal transfer when the market price is $88?
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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