The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units), has the following sales and cost structure: $$\begin{array} { l r }
\text { Sales price per unit } & \$ 45.00 \
\text { Variable cost per unit } & 22.50 \
\text { Fixed cost (at capacity) per unit } & 15.00
\end{array}$$ If the National Division buys its 10,000 widgets from the Overseas Division, the transfer price should be:

Question

The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units), has the following sales and cost structure: $$\begin{array} { l r } 
\text { Sales price per unit } & \$ 45.00 \
\text { Variable cost per unit } & 22.50 \
\text { Fixed cost (at capacity) per unit } & 15.00
\end{array}$$ If the National Division buys its 10,000 widgets from the Overseas Division, the transfer price should be:

Quizplus · Accepted Answer

The Answer of The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units), has the following sales and cost structure: $$\begin{array} { l r } 
\text { Sales price per unit } & \$ 45.00 \
\text { Variable cost per unit } & 22.50 \
\text { Fixed cost (at capacity) per unit } & 15.00
\end{array}$$ If the National Division buys its 10,000 widgets from the Overseas Division, the transfer price should be:

The National Division of Roboto Company Is Buying 10,000 Widgets