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Author Question: Chute Company's Extract division has collected the following information.Normal selling price $2.90 ... (Read 20 times)

knightj

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Chute Company's Extract division has collected the following information.

Normal selling price $2.90 per bottle
Variable product costs1.25 per bottle
Fixed product costs 0.50 per bottle
Variable selling and administrative costs 0.25 per bottle
Production capacity1,500,000 bottles

Assuming that the division has excess capacity of 300,000 and the Baked Goods division wants to buy 250,000 bottles, the minimum transfer price is
◦ $2.90
◦ $1.50
◦ $2.00
◦ $1.15


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Marked as best answer by knightj on Feb 5, 2023

SphnxKickin

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knightj

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


abro1885

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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