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suppose the transfers of pillars to the lantern would reduce sales to outside customers by 15000. whats the lowest transfer price that would
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18 votes
18 votes
suppose the transfers of pillars to the lantern would reduce sales to outside customers by 15000. whats the lowest transfer price that would

User Nicolas Busca
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1 Answer

19 votes
19 votes

Answer:

$1.20

Step-by-step explanation:

Variable cost per pillar is $0.80, there is demand of pillar for 15000 by an outside customer. The selling cost is around $0.40. The total variable cost is $1.20, this is minimum transfer price that can be set by the supplier.

User Pingoo
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