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jerico jerico
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Posts: 4603
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9 years ago
Aerated Water Company makes internal transfers at 180% of full cost. The Soda Refining Division purchases 30,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $30 per container via an external shipper. To reduce costs, the company located an independent supplier in Missouri who is willing to sell 30,000 containers at $22 each, delivered to Aerated Water Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 30,000 containers at a variable cost of $1.50 per container. What is the total cost to Aerated Water Company if the carbonated water is purchased from the local supplier?
A) $900,000
B) $1,200,000
C) $1,501,000
D) $1,620,000
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Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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#1
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9 years ago
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jerico Author
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#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
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#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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#4
4 years ago
thankyouu for the answer!
wrote...
#5
3 years ago
Thanks
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