NEXT PRINTER VERSION BACK Question 27 Division A produces a product that it sells to the outside market. It has compiled the following: Variable manufacturing cost per unit Variable selling costs per unit $3 Total fixed manufacturing costs $156000 Total fixed selling costs $30000 Per unit selling price to outside buyers $58 Capacity in units per year 30000 $8 Division B of the same company is currently buying an identical product from an outside provider for $56 per unit. It wishes to purchase 5000 units per year from Division A. Division A is currently selling 26000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the minimum transfer price per unit that Division A would be willing to accept? O $8.00 $16.60 O $17.40 $58.00 SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 1 used JS weygandt, Managerial Accounting, Fifth Canadian Edition Help | System Announcements PRINTER VERSION BACK NEXT Question 28 Stone Site Ltd. has developed a stone cookie sheet and plans to sell it for $71 per sheet. Prototypes of the stoneware are costing $62. Management believes Stone Site can reduce the cost substantially and it wants to earn a return of 27% of the selling price. Determine the target cost per unit that would earn their desired 27% return. (Round answer to 2 decimal places, e.g. 15.25.) Target cost per unit If instead they want to earn a 38% return, what would the target cost be? (Round answer to 2 decimal places, e.g. 15.25.) Target cost SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 1 used