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Barrister Company Has Two Divisions: a and Z

question 46

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Barrister Company has two divisions: A and Z.The A Division produces a single product that can be sold to outside customers or to the Z Division.Sales forecasts,production statistics and costs for both divisions for 2008 are shown below:
A Division:
Z Division:
* When A Division sells to Z Division,no variable selling costs are incurred by A Division.Calculate the minimum per unit transfer price that A Division should charge Z Division in 2008,using the general transfer-pricing formula. Barrister Company has two divisions: A and Z.The A Division produces a single product that can be sold to outside customers or to the Z Division.Sales forecasts,production statistics and costs for both divisions for 2008 are shown below: A Division: Z Division: * When A Division sells to Z Division,no variable selling costs are incurred by A Division.Calculate the minimum per unit transfer price that A Division should charge Z Division in 2008,using the general transfer-pricing formula.     A)  $6.00 B)  $8.50 C)  $7.26 D)  None of the given answers
Barrister Company has two divisions: A and Z.The A Division produces a single product that can be sold to outside customers or to the Z Division.Sales forecasts,production statistics and costs for both divisions for 2008 are shown below: A Division: Z Division: * When A Division sells to Z Division,no variable selling costs are incurred by A Division.Calculate the minimum per unit transfer price that A Division should charge Z Division in 2008,using the general transfer-pricing formula.     A)  $6.00 B)  $8.50 C)  $7.26 D)  None of the given answers


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