Top Posters
Since Sunday
10
s
5
j
4
s
4
W
3
a
3
H
3
s
3
a
3
o
3
K
3
m
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
carlvh37 carlvh37
wrote...
Go to Answer
Posts: 77
Rep: 0 0
A month ago
Rivers Industries produces and sells electronic sound equipment. The company has production capacity of 20,000 units and currently production schedule is for 18,000 units. Each unit has a selling price of $25, variable product cost of $15, and variable selling cost of $2. Another division wishes to purchase 500 units. If Rivers sells the units to the other division, it will avoid $1 of the variable selling costs. What is the minimum transfer price that will maximize corporate profits?

▸ $15

▸ $16

▸ $25

▸ $17
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 27 times
1 Reply
Replies
Answer verified by a subject expert
hadu582hadu582
wrote...
#1
Posts: 68
Rep: 0 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
$16

$15 + ($2 − $1) = $16
1

Related Topics

carlvh37 Author
wrote...

A month ago
Thanks
carston
wrote...

Yesterday
Good timing, thanks!
annabananerz
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  310 People Browsing
 476 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 638
  
 256
  
 122
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 172
Previous poll results: Which country would you like to visit for its food?