The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70
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The Plastics Division of Weston Company manufactures plastic molds and then sells them to customers for $70 per unit. Its variable cost is $30 per unit, and its fixed cost per unit is $10. Management would like the Plastics Division to transfer 10,000 of these molds to another division within the company at a price of $40. The Plastics Division is operating at full capacity.
What is the minimum transfer price that the Plastics Division should accept?
(a) $10.
(b) $30.
(c) $40.
(d) $70.
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Related Book For 
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ISBN: 9781118004234
1st Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
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