Answer the following question(s) using the information below.Beta Shoe Ltd.manufactures only one type of shoe and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the shoe and sells it to retailers.The Sole Division "sells" soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $20.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 60,000 pairs of shoes.Sole's costs per pair of soles are:
Assembly's costs per completed pair of shoes are:
-What is the market-based transfer price per pair of soles from the Sole Division to the Assembly Division?
Definitions:
Interest
The cost of borrowing money or the payment received for the investment of money, typically expressed as a percentage of the principal.
Maturity Value
Maturity Value is the amount payable to an investor at the maturity date of a financial instrument, typically including the principal and the interest.
Note Receivable
A written promise to pay a specified amount, usually interest-bearing, that is recognized as an asset on the lender's balance sheet.
Promissory Notes
Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.
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