Question: Please help with all the steps :) ABC company has two divisions (Division A and Division B). Division A produces widgets and Division B wants
ABC company has two divisions (Division A and Division B). Division A produces widgets and Division B wants to purchase paper from Division A. Division B can also purchase paper from a third party for $200 per widget. Division A costs to produce widget include the following: Variable Cost per unit $100 Fixed Cost per unit $60 Selling price to external customers $190 Please calculate the following: 1) Market based transfer price 2) Cost based transfer price 3) Full cost based transfer price 4) Cost plus (assume 10% markup) 5) Full cost plus (assume 10% markup) Do not include commas in your answers. Your answers should just be whole numbers with no cents. (See lecture 9.4b for transfer pricing)
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