Division A produces a part used by by Division B. The part is currently sold...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Division A produces a part used by by Division B. The part is currently sold by Division A to outside customers for $10 each, and it takes $6 in variable costs to produce each unit.
If Division A has a capacity to produce 1,000 units of the part and is currently producing and selling 800 units, then the minimum transfer price per unit that it would be willing to accept from Division B for the transfer of 400 units is?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.