Tamarisk Industries has two divisions, the D division and the J division. Information about a component...

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Tamarisk Industries has two divisions, the D division and the J division. Information about a component that the D division produces is as follows: Revenue $101 per unit Variable manufacturing costs $30 per unit Fixed manufacturing overhead $15 per unit Expected sales in units 7,450 units The D division can produce up to 8,550 components per year. The J division needs 600 units of the component for a product it manufactures. (a) Determine the minimum transfer price that the D division would accept. Minimum transfer price $ Tamarisk Industries has two divisions, the D division and the J division. Information about a component that the D division produces is as follows: Revenue $101 per unit Variable manufacturing costs $30 per unit Fixed manufacturing overhead $15 per unit Expected sales in units 7,450 units The D division can produce up to 8,550 components per year. The J division needs 600 units of the component for a product it manufactures. (a) Determine the minimum transfer price that the D division would accept. Minimum transfer price $

Answer rating: 100% (QA)

Answer The minimum transfer price that the D division would accept should be at least equal to the v... View the full answer