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Winek Company's Tackle division has collected the following information:Normal selling price $18.00 ...
jkim3464
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Winek Company's Tackle division has collected the following information:Normal selling price $18.00 ...
Winek Company's Tackle division has collected the following information:
Normal selling price
$18.00 per box
Variable product costs
10.25 per box
Fixed product costs
3.50 per box
Variable selling and administrative costs
2.75 per box
The Tackle division has no excess capacity. Winek's Little Fisherman division sells complete fishing kits for children and wants to purchase 100,000 tackle boxes. The minimum transfer price would be
▸ $8.00
▸ $13.00
▸ $18.00
▸ $16.50
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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$18.00
Since there is no excess capacity, the normal selling price of $18 per box would be the minimum transfer price.
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This site is awesome
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