• 2021-04-14
    Division Big does have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Division Small wants to purchase Product XX from Division Big to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12. What is the minimum transfer price for Division Big?
  • $6 per unit

    内容

    • 0

      If the price of a product decreases by 10 per cent and sales increase by 5 per cent, demand for that product would be said to be price inelastic.

    • 1

      Beckham Company has the following information available: Selling price per unit $100 Variable cost per unit $55 Fixed costs per year $400,000 Expected sales per year 20,000 units What is the expected operating income for a year?

    • 2

      Werth Company produces tie racks. Its estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 racks at a price of $20 per unit. How many units will be sold at breakeven? A: 48,000. B: 3,600. C: 14,400. D: 20,571.

    • 3

      A business sells product B. The fixed costs of the business are $125,000. The variable cost of product B is $25 and the required profit is $50,000. Expected production is 12,500 units. What is the selling price of product B?______

    • 4

      Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 1,800 units are sold each month? ( ) A: $82,500. B: $70,500. C: $12,000. D: $16,500.