What internal price should be set to transfer a pound

Assignment Help Managerial Accounting

Reference no: EM133392326

Question: Katsen Coffee has two divisions, Roasting and Brewing. The Roasting division can sell its products to an external market for $15 per unit. The division's variable manufacturing costs are $4.5 per pound and fixed manufacturing costs are $0.90 per pound.

Now assume the Roasting division is currently at maximum capacity, selling all the beans they can roast to their external customers. What internal price should be set to transfer a pound of coffee from the Roasting division to the Brewing division?

Reference no: EM133392326

Questions Cloud

What is the goal of the eoq? how does it differ : What is the goal of the EOQ? How does it differ from JIT inventory? Why is it important to control inventory? What is the optimal process?

Discuss the three inferred flaws that the multinationals : Using examples from the case study, discuss the three inferred flaws that the multinationals are making currently and what is the impact of these flaws

Identify the key performance issues at risk : What is the ethical issue and Identify the key performance issues at risk, and recommend a plan of action for Irwin

What is your opinion of contemporary art : What is your opinion of contemporary art? How has it changed? How can contemporary art help with personal expression?

What internal price should be set to transfer a pound : What internal price should be set to transfer a pound of coffee from the Roasting division to the Brewing division?

Describe the women of the convent see men in general : Describe how the women of the convent see men in general. Do you find that the arrival of the princess and final reveal of personality of their views at all?

What are the possible causes for the material price : Determine the material price variance and whether it is favourable or unfavourable and Determine the material usage variance and whether it is favourable

How is this issue related to managerial accounting : How is this issue related to managerial accounting? Remember that the key tasks of managerial accountants are planning, decision making, and control

How does meaning change based on each poem category : Does the speaker's (not the author, but the person telling the story of the poem) POV affect the reader's interpretation?

User Account

All Pages