This 1 pt 26of40(D complete) Tmekooper Corporation has two divisions, Distributi

Question

This 1 pt 26of40(D complete) Tmekooper Corporation has two divisions, Distribution and Manufacturing. The company's primary product is high-end watches. Each division's costs are provided below Extraction Variable costs per unit $1.87 Refining: Variable costs per unit $1.40 The Distribution Division has been operaling at a capacity of 4,009,000 units a week and usually purchases 2.004,500 units from the Manufacturing Division and 2 004,500 units from other suppliers at $10.00 per Foued costs per unit $7.29 Fixed costs per unit $0.60 What is he transler pen watch horn to Mar daduring Division toteDiedon Dvieon, assuming the method used to place a vale on oach watch is 170% of variable costs? O A $8.13 O B. $3.19 O C. $3.18 O D. $1.87 acBoo

Explanation / Answer

It was given that transfer price = 170% of variable cost of manufacturing division.

= 1.87 * 170% = 3.179 .......... = 3.18 ............final answer

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