Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 06 Nov 2017 My Price 4.00

division of Southern Fasteners

18-4

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The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $8 per unit. Its variable cost is $3 per unit, and its fixed cost per unit is $1.50. Management would like the fastener division to transfer 12,000 of these zippers to another division within the company at a price of $3. The fastener division could avoid $0.20 per zipper of variable packaging costs by selling internally.

Determine the minimum transfer price (a) assuming the fastener division is not oper- ating at full capacity, and (b) assuming the fastener division is operating at full capacity.

 

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Answers

Maurice Tutor
(5)
Status NEW Posted 06 Nov 2017 11:11 PM My Price 4.00

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