The Wood Division of Fir products. Manufactures wood molding and sells them externally for $100. Its variable

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The Wood Division of Fir products. Manufactures wood molding and sells them externally for $100. Its variable costs $40 per unit, and its fixed cost per unit is $14. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $54.

Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is:

Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is:

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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