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The Assembly Division of Mounds Corporation makes a component part that the Packaging Division needs ...

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The Assembly Division of Mounds Corporation makes a component part that the Packaging Division needs ...

The Assembly Division of Mounds Corporation makes a component part that the Packaging Division needs to purchase. The Assembly Division's variable cost of manufacturing the component is $25 per unit. The component is also available on the open market at a price of $52. The Packaging Division needs 800 units of the component and the Assembly Division has excess capacity of 1,000 units.

Required:

a.	Calculate the total cost-based-transfer price that the Assembly division should charge

the Packaging division.

b.	Calculate the total market-based transfer price that the Assembly division should

charge
the Packaging division.

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Managerial Accounting

Edition: 4^th

Author: Davis

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RHCP12 Author

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Brilliant ツ

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Thank you, thank you, thank you!

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You make an excellent tutor!

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