A company manufactures a product (X) which requires five units of a component (K) per unit...

   

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A company manufactures a product (X) which requires five units of a component (K) per unit end product (as shown in figure below). The product's selling price is 775,-- € per unit X. Controlling department also provides production coefficients (i.e required amount of input units (resource R and working time) to produce one unit of K and X, respectively): „Production of K Production of X" 5 R/ unit K 3 h/ unit K Preliminary production 5 K/ unit X 5 R/ unit X 3 h/ unit X End production Sales price: 775,-- €/ unit X The company pays a compensation of 25 € per hour (h) and a price of 5,-- € per unit R. a) Please calculate the transfer price [€/ unit K] applying the cost plus method. A company manufactures a product (X) which requires five units of a component (K) per unit end product (as shown in figure below). The product's selling price is 775,-- € per unit X. Controlling department also provides production coefficients (i.e required amount of input units (resource R and working time) to produce one unit of K and X, respectively): „Production of K Production of X" 5 R/ unit K 3 h/ unit K Preliminary production 5 K/ unit X 5 R/ unit X 3 h/ unit X End production Sales price: 775,-- €/ unit X The company pays a compensation of 25 € per hour (h) and a price of 5,-- € per unit R. a) Please calculate the transfer price [€/ unit K] applying the cost plus method.