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jkim3464 jkim3464
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A month ago
Winek Company's Tackle division has collected the following information:

Normal selling price $18.00 per box
Variable product costs10.25 per box
Fixed product costs 3.50 per box
Variable selling and administrative costs2.75 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: 4th
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meowkitty813meowkitty813
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A month ago
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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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