Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity. Using the...


Company E has two divisions, Division A and Division B. Division A is currently<br>buying Component X from an external seller for $13. Division B produces<br>Component X and has excess capacity.<br>Using the following data, what would the transfer price per unit if Division A<br>purchased Component X from Division B at the cost plus assuming 25% transfer<br>price?<br>• Variable cost per unit $6.38<br>Fixed cost per unit 1.13<br>• Division B sales price of Component X 14.50<br>

Extracted text: Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the cost plus assuming 25% transfer price? • Variable cost per unit $6.38 Fixed cost per unit 1.13 • Division B sales price of Component X 14.50

Jun 01, 2022
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