Minimum transfer price that heating division accept, Accounting Basics

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Minimum transfer price that heating division accept

The Heating Division of PFC International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $19, and its fixed cost per unit is $10. Top management of PFC International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

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Accounting Basics: Minimum transfer price that heating division accept

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Accounting Basics: Minimum transfer price that heating division accept

Reference No:- TGS057284

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Accounting Basics: Minimum transfer price that heating division accept

Reference No:- TGS057284

Recent Questions Asked Accounting Basics

Q : Charitable contribution deduction introduction

Q : Problem based on calendar year shareholders

Q : Budgeted markup percentage using full cost approach

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Q : Minimum transfer price that heating division accept

Q : Allen break-even point in units

Q : Working capital to pay retention bonuses

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Q : Exchange deemed to lack commercial substance

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