Top Posters
Since Sunday
6
s
4
t
4
k
4
H
3
S
3
c
3
m
3
b
3
d
3
d
3
b
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
inkster inkster
wrote...
Go to Answer
Posts: 96
Rep: 0 0
7 months ago
Kitty City Company's Canned Foods division has collected the following information:

Normal selling price $3.90 per can
Variable product costs  2.20 per can
Fixed product costs 0.80 per can
Variable selling and administrative costs0.30 per can
Production capacity2,500,000 cans

The Canned Foods division is currently producing 2,000,500 cans. The company's Dinner Pack division wants to buy 350,000 cans. The minimum transfer price would be

▸ $3.30

▸ $3.00

▸ $2.50

▸ $1.10
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 34 times
1 Reply
Replies
Answer verified by a subject expert
jchang19jchang19
wrote...
#1
Posts: 96
Rep: 0 0
7 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
$2.50

Since Kitty City's Canned Foods division has enough excess capacity, the minimum transfer price is equal to the variable costs of $2.50 per can.
1

Related Topics

inkster Author
wrote...

7 months ago
Thanks
mcraver1
wrote...

Yesterday
Thanks
fxinternational
wrote...

2 hours ago
This helped my grade so much Perfect
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  240 People Browsing
 230 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1671
  
 252
  
 152
Your Opinion
How often do you eat-out per week?
Votes: 75
Previous poll results: Does a gender wage gap exist in America?