Medlock company has two divisions. Wheel and Chassis. New wheel division manufac

Question

Medlock company has two divisions. Wheel and Chassis. New wheel division manufactures a wheel assembly that the chassis division uses.......

** I know it is a little hard to read my screen. I'm very sorry. I recently dropped my laptop.

E Most Visited my.utrgv.edu ALGEBRA LoginSearch everything on connec Instructions | help Save & Exit Submit Time remaining: 047:02 8. Medlock Company has two divisions, Wheel and Chassis. The Wheel Dvision manufactures a wheel assembly that the Chassis DivMsion uses. The variable cost to produce this assembly is ST 00 per unit, full cost is $8.00. The component sells on the open market for $15.00 What will the transfer price be if Medlock uses a pricing rule of variable cost plus 50 percent? (Round your answer to 2 decimal places.) 522 1000 50 29... Chapter 10 test bank.o... Study Notes

Explanation / Answer

As mention in the question transfer price will be :-

( variable cost + 50% of variable cost )

So, Transfer price will be :-

Variable cost = $7.00

+ 50% of $7.00 = $ 3.50

So, Transfer Price = $10.50

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---