Bellows Company has two divisions, X and Y. Division X manufactures a wheel assembly that Division Y

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Bellows Company has two divisions, X and Y. Division X manufactures a wheel assembly that Division Y uses. The variable cost to produce this assembly is \($4-00\) per unit; full cost is \($5.00\). The component sells on the open market for \($9.00\). What will the transfer price be if Bellows uses a pricing rule of variable cost plus 40 percent?

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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