Question: Current Attempt in Progress Division A produces a productilthat it sells to the outside market. It has compiled the following Variable manufacturing cost per unit

 Current Attempt in Progress Division A produces a productilthat it sells

Current Attempt in Progress Division A produces a productilthat it sells to the outside market. It has compiled the following Variable manufacturing cost per unit 510 $3 Variable selling costs per unit Total fed manufacturing costs Totted selling costs $153000 $30000 Per unit selling price to outside buyers $60 Capacity in units per year 30000 Division of the same company is currently buying an identical product from an outside provider for 558 per unit. It wishes to purchase 4500 units per year from Division A. Division A is currently selling 30000 units of the product per year, the internal transfer is made. Division A will not incur any selling costs What would be the minimum transfer price per unit that Division would be willing to accept? 558 $11 510 560 Current Attempt in Progress Division A produces a productilthat it sells to the outside market. It has compiled the following Variable manufacturing cost per unit 510 $3 Variable selling costs per unit Total fed manufacturing costs Totted selling costs $153000 $30000 Per unit selling price to outside buyers $60 Capacity in units per year 30000 Division of the same company is currently buying an identical product from an outside provider for 558 per unit. It wishes to purchase 4500 units per year from Division A. Division A is currently selling 30000 units of the product per year, the internal transfer is made. Division A will not incur any selling costs What would be the minimum transfer price per unit that Division would be willing to accept? 558 $11 510 560

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