Wamsley Products, Inc., has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter that could be used by another division in the company, the Remote Devices Division, in one of its products. Data concerning that transmitter appear below: Capacity in units 60,000Selling price to outside customers$64Variable cost per unit$27Fixed cost per unit (based on capacity)$17?The Remote Devices Division is currently purchasing 8,000 of these transmitters per year from an overseas supplier at a cost of $61 per transmitter.?Assume that the Transmitter Division is selling all of the transmitters it can produce to outside customers. What should be the minimum acceptable transfer price for the transmitters from the standpoint of the Transmitter
Division?
A. $64 per unit
B. $61 per unit
C. $27 per unit
D. $44 per unit
Answer: A
You might also like to view...
To a producer of goods, a greater number of channel levels means ________ and greater channel complexity
A) less distance between producer and end consumer B) less control over the distribution process C) fewer potential channel conflicts D) higher taxes E) fewer channel partners
The logical solution to the problem of finding a global definition for diversity that can be relevant in different cultural and national contexts is to define diversity by process and _____________.
a. Category b. Consequences c. Relevancy d. Impact
The U.S. Constitution has one indirect and three direct sources of law
Indicate whether the statement is true or false
Which of the following would be most useful when valuing your company?
a. advice from family and friends b. success of a similar company in another part of the country c. advice from an accountant who has clients in a similar market and industry d. industry experts from another part of the country