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Minimum acceptable transfer prices. Question list...

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Minimum acceptable transfer prices. Question listed at the end of the attached document.,Michael - Thank you for accepting this question, I look forward to your answer.,I assumed that the use of the general pricing rule would be necessary. Transfer price = additional outlay cost per unit incurred because goods are transferred + opportunity cost per unit to the organization because of the transfer,It seems my initial response didn't go through to you. Before the post above, I asked why you decided to calculate direct labor cost per hour when the question asked for two different calculations of minimum acceptable transfer price to the appliance division: (1) for any number of units of instrument B transferred in the range of 0 - 2000, and (2) for any number of units of instrument B transferred in the range of 2001 - 5000. Am I missing something?

 

Paper#11308 | Written in 18-Jul-2015

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