Question: please solve I also need the answer to what is the potential loss to the corporation as a whole resulting from this forced transfer based
Swifty Corporation manufactures car stereos. It is a division of Marigold Motors, which manufactures vehicles, Swifty sells car stereos to Marigold, as well as to other vehicle manufacturers and retail stores. The following information is available for Swifty's standard unit: variable cost per unit $35, fixed cost per unit $21, and selling price to outside customer $86. Marigold currently purchases a standard unit from an outside supplier for $81. Because of quality concerns and to ensure a reliable supply, the top management of Marigold has ordered Swifty to provide 168,000 units per year at a transfer price of $33 per unit. Swifty is already operating at full capacity. Swifty can avoid $2 per unit of variable selling costs by selling the unit internally, Answer each of the following questions (a) X Your answer is incorrect. What is the minimum transfer price that Swifty should accept? $ Minimum transfer price 63 e Textbook and Media Assistance Used Attempts: 5 of 15 used Submit Answer Save for Later
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