Multiple Choice
The Can Division of Fruit Products Inc.manufactures and sells tin cans externally for $0.60 per can.Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively.The Packaging Division wants to purchase 50,000 cans at $0.32 a can.Selling internally will save $0.02 a can.
-Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?
A) $0.58
B) $0.66
C) $0.28
D) $0.34
Correct Answer:
Verified
Correct Answer:
Verified
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