WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating at capacity?

Answer rating: 100% (QA)

The minimum transfer price for the component should cover the variable cost as well as the opportuni... View the full answer