Stokan Products, Inc., has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another division in the company, the Aircraft Products Division, in one of its products. Data concerning that antennae appear below: Capacity in units 86,000Selling price to outside customers$63Variable cost per unit$22Fixed cost per unit (based on capacity)$18?The Aircraft Products Division is currently purchasing 5,000 of these antennaes per year from an overseas supplier at a cost of $57 per antennae.?Assume that the Antennae Division is selling all of the antennaes it can produce to outside customers. What should be the minimum acceptable transfer price for the antennaes from the standpoint of the Antennae Division?
A. $63 per unit
B. $57 per unit
C. $40 per unit
D. $22 per unit
Answer: A
You might also like to view...
The process whereby the judge and attorneys ask prospective jurors questions to determine whether they would be biased in their decisions is called ________.
A. interrogatory B. deposition C. peremptory D. voir dire
To create the Aging of Accounts Receivable report:
A. Select Reports Center > Customers & Receivables B. Select Company Center > Customers & Receivables C. Select Reports Center > Company & Financials D. Select Customers Center > Customers & Receivables
Lawyers prefer to negotiate touchy subjects as they arise rather than address them at the beginning of a relationship
a. True b. False Indicate whether the statement is true or false
The practice of comparing a company's achievements against the best practices in the industry is known as goal congruence
Indicate whether the statement is true or false