Business, 05.05.2020 09:53 medellincolombia99
Southwest Division offers its product to outside markets for $35. It incurs variable costs of $21 per unit and fixed costs of $40,000 per month based on monthly production of 4,500 units. Northeast Division can acquire the product from an alternate supplier for $41 per unit or from Southwest Division for a transfer price of $35 plus $3 per unit in transportation costs.
What are the costs and benefits of the alternatives available to Southwest Division and Northeast Division with respect to the transfer of Southwest Division's product?
Answers: 3
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Southwest Division offers its product to outside markets for $35. It incurs variable costs of $21 pe...
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