The machining division of Sheridan International has a capacity of 2,130 units. Its sales and cost data are: Selling price per unit $75 Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead 20 4 197,000 The machining division is currently selling 1,930 units to outside customers, and the assembly division of Sheridan International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $4/unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places e.g. 5.25.) Minimum transfer price Senter the minimum transfer price in dollars rounded to 2 decimal places

The machining division of Sheridan International has a capacity of 2,130 units. Its sales and cost data are: Selling price per unit $75 Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead 20 4 197,000 The machining division is currently selling 1,930 units to outside customers, and the assembly division of Sheridan International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $4/unit. What should be the transfer price in order not to affect the machining division's current profit? (Round answer to 2 decimal places e.g. 5.25.) Minimum transfer price Senter the minimum transfer price in dollars rounded to 2 decimal places

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Description: The machining division of Sheridan International has a capacity of 2,130 units. Its sales and cost data are:Selling price per unit$75Variable manufacturing costs per unitVariable selling costs per unitTotal fixed manufacturing overhead204197,000The

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 7EB: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has...

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