Refer to the data in case b above in this case there will

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Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. Determine the transfer price of the selling division. Case A B Division X: Capacity in units 92,000 93,000 Number of units being sold to outside customers 92,000 77,000 Selling price per unit to outside customers $59 $30 Variable costs per unit $26 $20 Fixed costs per unit (based on capacity) $7 $4 Division Y: Number of units needed for production 24,000 24,000 Purchase price per unit now being paid to an outside supplier $54 $40

Reference no: EM13605631

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