What is the minimum transfer price it should accept, Accounting Basics

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What is the minimum transfer price it should accept

The can Division of Fruit Products Inc. Manufactures and sells tin cans externally for $0.30 per can. Its unit variable costs and unit fixed costs are $0.12 and $0.04, respectively. The packaging division wants to purchase 50,000 cans at $0.16 a can. Selling internally will save $0.01 a can.Assuming the can Division has sufficient capacity, what is the minimum transfer price it should accept?

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Accounting Basics: What is the minimum transfer price it should accept

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the minimum transfer price it should accept

Reference No:- TGS0707438

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Prepare a horizontal income statement

Q : How the harold and betty generated from other sources

Q : Compute the controllable and volume overhead variances

Q : Discuss the payment of interest and amortization of discount

Q : What is the minimum transfer price it should accept

Q : What will be the carrying amount of the bonds

Q : Calculate the basis for the new residence

Q : Explain the manufactures wood moldings

Q : Compute united''s total 2012 payroll expense for welch

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the minimum transfer price it should accept

Reference No:- TGS0707438

Recent Questions Asked Accounting Basics

Q : Prepare a horizontal income statement

Q : How the harold and betty generated from other sources

Q : Compute the controllable and volume overhead variances

Q : Discuss the payment of interest and amortization of discount

Q : What is the minimum transfer price it should accept

Q : What will be the carrying amount of the bonds

Q : Calculate the basis for the new residence

Q : Explain the manufactures wood moldings

Q : Compute united''s total 2012 payroll expense for welch

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