Solution-What should be the transfer price in order not to

What should be the transfer price in order not to affect

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Reference no: EM132515222

The machining division of ITA International has a capacity of 2,310 units. Its sales and cost data are:

Selling price per unit $80

Variable manufacturing costs per unit 25

Variable selling costs per unit 6

Total fixed manufacturing overhead 189,100

Question 1: The machining division is currently selling 2,110 units to outside customers, and the assembly division of ITA International wants to purchase 400 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 $6/unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places e.g. 5.25.)

Reference no: EM132515222

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What should be the transfer price in order not to affect

Reference no: EM132515222

Reference no: EM132515222

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