Use the following information for the next 2 questions.
The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include:
-If Mukilteo is operating at full capacity and selling solely to outside customers, what price should another division pay for Mukilteo's product?
A) $285
B) $625
C) $640
D) $480

Question

Use the following information for the next 2 questions.
The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: 
-If Mukilteo is operating at full capacity and selling solely to outside customers, what price should another division pay for Mukilteo's product?
A) $285 
B) $625 
C) $640 
D) $480

Quizplus · Accepted Answer

When Mukilteo is operating at full capacity and selling solely to outside customers, the transfer price should be the market price, which is $640.

Use the Following Information for the Next 2 Questions