Management of the catering company


Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the restaurant Division for $80. The food division sells the product to customers for $140 per unit. The food divisions variable cost per unit is $60 and its fixed cost per unit is $20. The food division is currently operating at full capacity.What is the minimum transfer price the food division should accept?

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Accounting Basics: Management of the catering company
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