How do you do find the minimum transfer price ?
The machining division of ITA International has a capacity of 2,310 units. Its sales and cost data are:
Selling price per unit – 80$
$80Variable manufacturing costs per unit – 25$
Variable selling costs per unit – 6$
Total fixed manufacturing overhead – 189,100$
(Round answer to 2 decimal places e.g. 5.25.)
Question 1 El Your answer is incorrect. The machining division of 1TH International has a capacity.r of2,31i]| units. Its sales and cost data are: Selling price par unit s an1lil’ariahle manufactunng costs per unit 25variable selling dusts par unit 15 Tolal ﬁxed manufacturing overhEad 189,100 The machining division is cun’en’d’gir selling 2,020 units to outside customers. and the assemth division of ITAInternational wants to purchase 510 units from machining. If the transaction takes place, the variable selling costs perunit on the units transferred to assemva will be $Ufunit, and not $Efunit. What should be the transfer price in order notto affect the machining division‘s current proﬁt? (Round answer to 2 decimal places: no.9. 5.25.} IMinirnumhansfewrice J 2135′