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8 April, 07:06

The Finishing Division has the following data regarding one unit of product: Sales Price per - Unit $200 Variable Cost per - Unit 170 Contribution Margin per - Unit 30 Fixed Cost per - Unit 20 The transfer price should be between:

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  1. 8 April, 08:37
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    Variable Cost per - Unit 170

    Sales Price per - Unit $200

    Explanation:

    Variable Cost per - Unit 170

    Sales Price per - Unit $200

    The transfer price should be between:

    $170 and $200

    Therefore the transfer price should be between the variable cost per unit which is ($170) and the selling price per unit which is ($200).
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