Question: please show how to get correct answer The Heating Division of Novak International produces a heating element that it sells to its customers for $43
The Heating Division of Novak International produces a heating element that it sells to its customers for $43 per unit. Its unit variable cost is $29, and its unit fixed cost is $10. Top management of Novak international would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of \$33. Assume that the Heating Division has sufficient excess capacity to provide the 15,000 heating units to the other division. What is the minimum transfer price that the Heating Division should accept? Minimum transfer price eTextbook and Media
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
