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Evergreen Corp

question 37

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Evergreen Corp.has two divisions,Fern and Bark.Fern produces a widget that Bark could use in the production of units that cost $175 in variable costs,plus the cost of the widget,to manufacture.Fern's variable costs are $60 per widget,and fixed manufacturing costs are applied at a rate of $36 per widget.Widgets sell on the open market for $105 each.Evergreen's policy is that internal transfers will be made at full cost.If Bark purchases the widgets from Fern,what will be the transfer price?

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Definitions:

Reader Benefit

The advantage or positive outcome that a reader gains from consuming written material, making the communication relevant to their needs or interests.

Subjunctive Verbs

Refers to a verb mood used to express various states of unreality such as wish, emotion, possibility, judgement, opinion, necessity, or action that has not yet occurred.

Intrinsic Reward

A type of motivation that comes from within an individual, driven by personal satisfaction or the joy of doing something.

Commendable Work

Actions, efforts, or results deserving praise or recognition for quality or achievement.

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