Fois Company has two divisions, Division X and Division Y. Division X has a production capacity of
Fantastic news! We've Found the answer you've been seeking!
Question:
Fois Company has two divisions, Division X and Division Y. Division X has a production capacity of 5,000 units of a particular part per month. Division X sells 4,400 units of the part each month to outside customers at a contribution margin of $56 per unit. Division Y would like to buy 800 units of the part each month from Division X. In computing the lowest acceptable transfer price from the perspective of the selling division, the lost contribution margin per unit portion of the transfer price computation would be:
$56.00 per unit
$30.00 per unit
$14.00 per unit
$25.00 per unit
None of the above
Related Book For
Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date: