Homework Answers
(Q) What should be the transfer price ?
(Ans) Option A - $73.67
- The variable cost per unit is $25 + 2 = $27 per unit
- lost opportunity of sales ={ $100(SP) - $30(VC) }x200 units = $14000/300= $46.67 per unit
Therefore transfer price = $27 + $46.67 = 73.67
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