The Wood Division of Fir products. Manufactures wood molding and sells them externally for $100. Its variable
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The Wood Division of Fir products. Manufactures wood molding and sells them externally for $100. Its variable costs $40 per unit, and its fixed cost per unit is $14. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $54.
Assuming the Wood Division has available capacity of 5,000 units, 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:
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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