Question

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:

Answer 1

Answer:

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).