Minimum transfer price under different situations

Reference no: EM13146019

Next Step (NS) is a division of Worldwide Electronics, Inc. NS produces videogame systems. These systems are sold to retailers. NS recently approached the manager of the Personal Computer Division regarding a request to buy a special circuit board for a new advanced video game system. NS has requested that the personal computer division produce 200,000 units of this special circuit board. The following facts are available regarding the Personal Computer (PC) Division.

Selling price of standard circuit board $57

Variable cost of standard circuit board 30

Additional variable cost of special circuit board 21

Determine minimum transfer price under different situations.

Reference no: EM13146019

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