Question: TB MC Qu. 10-85 (Static) Evergreen Corp. has two divisions, Fern and... Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that


TB MC Qu. 10-85 (Static) Evergreen Corp. has two divisions, Fern and... Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use In the production of units that cost $175 in variable costs, plus the cost of the widget, to manufacture. Fern's variable costs are $60 per widget, and fixed manufacturing costs are applied at a rate of $36 per widget. Widgets sell on the open market for $105 each. Evergreen's policy Is that Internal transfers will be made at variable cost plus 20%. If Bark purchases the widgets from Fern, what will be the transfer price? Multiple Choice O $115.20 O $126.00 O $72.00 $210.00
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
