Mubins has two divisions, Distribution and Production. The company's primary product is soil. Each division's costs...

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Mubins has two divisions, Distribution and Production. The company's primary product is soil. Each division's costs are provided below: Variable costs per kilogram $0.05 Fixed costs per Production: kilogram $0.25 Variable costs per kilogram $0.03 Fixed costs kilogram $0.02 Distribution: The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 160% of variable costs? A) $0.48 B) $0.40 The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 160% of variable costs? A) $0.48 B) $0.40 C) $0.08 D) $0.05 E) $0.11 The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 120% of full costs? A) $0.42 O B) $0.30 C) $0.36 D) $0.45 OE) $0.55 Mubins has two divisions, Distribution and Production. The company's primary product is soil. Each division's costs are provided below: Variable costs per kilogram $0.05 Fixed costs per Production: kilogram $0.25 Variable costs per kilogram $0.03 Fixed costs kilogram $0.02 Distribution: The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 160% of variable costs? A) $0.48 B) $0.40 The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 160% of variable costs? A) $0.48 B) $0.40 C) $0.08 D) $0.05 E) $0.11 The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of soil is 120% of full costs? A) $0.42 O B) $0.30 C) $0.36 D) $0.45 OE) $0.55

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Variable production cost per unit 005 Variable dist... View the full answer