If the transaction takes place the variable selling costs

Assignment Help Accounting Basics

Reference no: EM13486124

The machining division of ITA International has a capacity of 2,330 units. Its sales and cost data are:

Selling price per unit	$	77
Variable manufacturing costs per unit		22
Variable selling costs per unit		7
Total fixed manufacturing overhead		213,300

The machining division is currently selling 2,050 units to outside customers, and the assembly division of ITA International wants to purchase 560 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $7/unit. What should be the transfer price in order not to affect the machining division's current profit?

Reference no: EM13486124

Questions Cloud

Bakers corporation has asked for an estimate on rebuilding : louise remanufacturing rebuilds spot welders for manufacturers. the following budgeted cost data for 2012 are available

What is the bonds price today if the interest rate on : the altoona co. issued a 25-year bond 5 years agowith a face value of 1000. the bond pays interest semiannually at a

Schuman corporation produces microwave units the following : schuman corporation produces microwave units. the following per-unit cost information is available direct materials 37

Assume that you are a consultant to morton inc and you have : assume that you are a consultant to morton inc. and you have been provided with the following data d1 1.00 p0 25.00

If the transaction takes place the variable selling costs : the machining division of ita international has a capacity of 2330 units. its sales and cost data areselling price per

A corporate bond is sold at 91381 and it will mature in six : a corporate bond is sold at 913.81 and it will mature in six years. its ytm is 11. what is the annual coupon rate of

The timberlake-jackson wardrobe company has 10 percent : the timberlake-jackson wardrobe company has 10 percent coupon bonds on the market with nine years left to maturity.

Holly inc reports warranty expense when related products : holly inc reports warranty expense when related products are sold. for tax purposes the warranty costs are deductible

Determine davidians postretirement benefit expense for the : davidian enterprises had the following data pertaining to its health care beneift plan for the current calendar year

User Account

All Pages