Oller Corporation Oller Corporation produces various products used in the construction industry.The Plumbing Division produces and sells 100,000 copper fittings each month.Relevant information for last month follows:
Top-level managers are trying to determine how a transfer price can be set on a transfer of 10,000 of the copper fittings from the Plumbing Division to the Bathroom Products Division.
Refer to Oller Corporation.A transfer price based on market price would be set at ____ per unit.

Question

Oller Corporation Oller Corporation produces various products used in the construction industry.The Plumbing Division produces and sells 100,000 copper fittings each month.Relevant information for last month follows:
 Top-level managers are trying to determine how a transfer price can be set on a transfer of 10,000 of the copper fittings from the Plumbing Division to the Bathroom Products Division.
Refer to Oller Corporation.A transfer price based on market price would be set at ____ per unit.

Quizplus · Accepted Answer

The market price for copper fittings that the Plumbing Division produces and sells each month is $2.50 per unit. Therefore, if the transfer price is based on market price, it would also be set at $2.50 per unit.

Oller Corporation Oller Corporation Produces Various Products Used in the Construction