Company E has two divisions, Division A and Division B. Division A is currently buying Component...
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Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the full-cost plus assuming 17% transfer price? • Variable cost per unit $6.77 . Fixed cost per unit 1.54 • Division B sales price of Component X 14.5 Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $14. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the full-cost plus assuming 17% transfer price? • Variable cost per unit $6.77 . Fixed cost per unit 1.54 • Division B sales price of Component X 14.5
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Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
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