Calculate the net profit for each division

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The CE Bakery has identified several processes required to produce one cupcake. The company treats each process as a separate division and charges transfer prices between internal processes. The company sells 45,000 cupcakes in one year.

                                               Purchasing                  Baking               Packaging            Customer Service

Cost per cupcake                $0.95                           $0.50                 $0.35.                   $0.40

Transfer price                       $1.15.                       $1.75.                    $2.20.                 $2.85

Problem 1: Calculate the net profit for each division.

Problem 2: Calculate total yearly profit for the CE Bakery.

Reference no: EM132958295

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