COMM 305 Chapter Notes - Chapter 9: Gross Profit, Cost Accounting, Variable Cost
24 Jan 2015
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Review 9-15 (a) minimum transfer price = . 00 sh. 25 = . 75 (b) minimum transfer price = . 75 + (. 00 . 00) = . 75. Exercise 9-18 (a) (1) in this case the selling price would be ( + [ . The problem with the is that it is unlikely that mucky. Duck will be able to sell any all-body suits at that price. Market research seems to indicate that it will sell for only . (2) one way that mucky duck might consider manufacturing the. All-body swimsuit is if it has excess capacity and therefore manufacturing the all-body will not affect fixed costs. Thus if the company can cover its variable costs it might want to sell at the. In this case the amount would be the selling price of . The highest acceptable cost would be the target cost. The target cost is as shown below:
