wrong =5 down votes

3. RTP Transfer Prices and effect on Divisional decisions - CVP Analysis Alpha and Beta are two divisions under the same group of Companies. The production capacity of Alpha is 4,000 kilolitres per month. However, due to external demand considerations, Alpha will be able to utilise 75% of its capacity per month during the 780 per kilolitre and the Fixed Cost is 2,40,000 per month. year. It will sell one-third of its production to Beta and the balance quantity will be sold in the market. The Variable Cost is The current policy of the Group is to use Market Price as the Transfer Price between the two Divisions. Beta uses the output of Alpha as Raw Materials to produce a branded product which is sold in cans of 25 litre capacity at the rate of