The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows: The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350
B) $900
C) $2,100
D) $300

Question

The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows:  The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350 
B) $900 
C) $2,100 
D) $300

Quizplus · Accepted Answer

The Answer of The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows:  The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350 
B) $900 
C) $2,100 
D) $300

The Jet Engine Division Provides Engines for the Jet Plane