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What is the minimum transfer price

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Reference no: EM132957418

Problem 1: The process of evaluating relevant information that changes operating income under alternative courses of action is called? ________.

A. costminus benefit analysis

B. CVP analysis

C. opportunity cost analysis

D. incremental analysis

Problem 2: Rollins, Inc. has a division that manufactures a component that sells for $ 270 and has a variable cost of $ 135 Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 52. What is the minimum transfer price if the division manufacturing the component is operating below its? capacity?

A. $ 187

B. $ 52

C. $ 270

D. $ 135

Reference no: EM132957418

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