Question: * Please help with this problem. Can you please show your work so I can understand the answer. Thank you!!** 9. (4 points) Zenith Co.
*Please help with this problem. Can you please show your work so I can understand the answer. Thank you!!**
9. (4 points) Zenith Co. has two divisions: Processing & Assembly. The Processing Division manufactures auto frame panels then transfers the panels to the Assembly Division where the panels are assembled into finished auto frames. The Processing Division is currently working at capacity. The Processing Division incurs variable costs of $6,000 per unit to manufacture and fixed manufacturing costs of $500,000. Finished frame units can be sold externally for $8,500 per unit. Zenith manufactures and sells 10,000 frames externally per year. a. Using the general transfer pricing rule calculate the minimum transfer price at which the Processing Division would sell frame panel units to the Assembly Division
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