Given the conditions cited above, what transfer price would be used according to the transfer price formula?A. P28B. P30C. P42D. P45 Lou and Vega are the only two divisions in LV Company.Lou makes and sells motors which can either be sold to outside customers or sold to Vega.The following data are availableLouVegaSelling Price per motor to outside customersVariable Costs per motor when sold to outside customersCapacity in motorsmotors sold to outside customersP45P3012,0006,000Number of motors needed/monthPrice per motor paid to an outside supplierIf Lou sells the motors to Vega, Lou can avoid P2 per motor in sales commisions4,000P42

Lets understand the basics. Transfer price is a price through which transfer of units between inter…

Answered: Given the conditions cited above, what…

Given the conditions cited above, what transfer price would be used according to the transfer price formula? A. P28 B. P30 C. P42 D. P45

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...

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