Tuttle Motorcycles Inc. manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20,000 units to the Production Division at $1,050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier. What is the minimum transfer price that the Engine Division should accept? (Round your answer to a whole number if needed. Just put the number in the blank. No $ sign.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tuttle Motorcycles Inc. manufactures and sells high-priced motorcycles. The
Engine Division produces and sells engines to other motorcycle companies and
internally to the Production Division. It has been decided that the Engine
Division will sell 20,000 units to the Production Division at $1,050 a unit. The
Engine Division, currently operating at capacity, has a unit sales price of $2,550
and unit variable costs and fixed costs of $1,050 and $750, respectively. The
Production Division is currently paying $2,400 per unit to an outside supplier.
What is the minimum transfer price that the Engine Division should accept?
(Round your answer to a whole number if needed. Just put the number in the
blank. No $ sign.)
2,460
Transcribed Image Text:Tuttle Motorcycles Inc. manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20,000 units to the Production Division at $1,050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2,550 and unit variable costs and fixed costs of $1,050 and $750, respectively. The Production Division is currently paying $2,400 per unit to an outside supplier. What is the minimum transfer price that the Engine Division should accept? (Round your answer to a whole number if needed. Just put the number in the blank. No $ sign.) 2,460
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