Landscape Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the Mower Division. Costs for each division are given below. Mowers are sold on in a competitive outside market for $250.
All transfers are made at 130% of variable cost. This period, Components sends Assembly 10,000 packages of engine components.
What is the transfer price Assembly pays Components for engine components?

Question

Landscape Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the Mower Division. Costs for each division are given below. Mowers are sold on in a competitive outside market for $250.
  All transfers are made at 130% of variable cost. This period, Components sends Assembly 10,000 packages of engine components.
What is the transfer price Assembly pays Components for engine components?

Quizplus · Accepted Answer

The Answer of Landscape Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the Mower Division. Costs for each division are given below. Mowers are sold on in a competitive outside market for $250.
  All transfers are made at 130% of variable cost. This period, Components sends Assembly 10,000 packages of engine components.
What is the transfer price Assembly pays Components for engine components?

Landscape Manufacturing Company Has Three Divisions