The output of Division M, which sells for $10/unit externally, is used by Division N. Required: Compute the transfer price for a unit of Division M's output using:
1) market price
2) variable production cost plus 30 percent
3) absorption cost plus 25 percent
4) variable cost
5) total cost plus 10 percent
The following costs exist for Division M of Clark Corp.

Question

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The Answer of The output of Division M, which sells for $10/unit externally, is used by Division N. Required: Compute the transfer price for a unit of Division M's output using:
1) market price
2) variable production cost plus 30 percent
3) absorption cost plus 25 percent
4) variable cost
5) total cost plus 10 percent
The following costs exist for Division M of Clark Corp.

The Output of Division M, Which Sells for $10/unit Externally