What is minimum transfer price that heating division accept, Accounting Basics

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What is minimum transfer price that heating division accept

The Heating Division of KLM International produces a heating element that it sells to its customers for $40 per unit. Its variable cost per unit is $18, and its fixed cost per unit is $11. Top management of KLM International would like the Heating Division to transfer 15,430 heating units to another division within the company at a price of $35. 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: What is minimum transfer price that heating division accept

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Request for Solution File

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Accounting Basics: What is minimum transfer price that heating division accept

Reference No:- TGS0684601

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Describe the rate of return on investment

Q : Calculate the current ratio at december

Q : Test claim that mean circumference of pumpkins is of value

Q : Net operating income increase or derease

Q : What is minimum transfer price that heating division accept

Q : What percentage is the simple rate of return

Q : Find probability that sample mean of weight lie in range

Q : Problem related to probability density function

Q : Calculate the swifts monthly break-even point

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is minimum transfer price that heating division accept

Reference No:- TGS0684601

Recent Questions Asked Accounting Basics

Q : Describe the rate of return on investment

Q : Calculate the current ratio at december

Q : Test claim that mean circumference of pumpkins is of value

Q : Net operating income increase or derease

Q : What is minimum transfer price that heating division accept

Q : What percentage is the simple rate of return

Q : Find probability that sample mean of weight lie in range

Q : Problem related to probability density function

Q : Calculate the swifts monthly break-even point

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