What is the minimum transfer price the food division


Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $120. The Food Division sells the product to customers for $210 per unit. The Food Division's variable cost per unit is $105 and its fixed cost per unit is $30.Reference: Ref 8-15If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the minimum transfer price the food division
Reference No:- TGS0706940

Expected delivery within 24 Hours