Campos Company's records reveal the following: Variable costs:
The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Assume Division A is working at full capacity.Division B can buy the parts from an outside supplier at $75 per unit.What is the lowest transfer price per unit Division A should accept from Division B?

Question

Campos Company's records reveal the following:   Variable costs:
 The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Assume Division A is working at full capacity.Division B can buy the parts from an outside supplier at $75 per unit.What is the lowest transfer price per unit Division A should accept from Division B?

Quizplus · Accepted Answer

The Answer of Campos Company's records reveal the following:   Variable costs:
 The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Assume Division A is working at full capacity.Division B can buy the parts from an outside supplier at $75 per unit.What is the lowest transfer price per unit Division A should accept from Division B?

Campos Company's Records Reveal the Following: Variable Costs