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transfer price

This topic has 3 replies, 3 voices, and was last updated 10 years ago by John Moffat.

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November 14, 2014 at 7:52 am #209861
jingdong
Participant
- Topics: 89
- Replies: 115
Dear sir and madam, would you please help me sort this question out?
x y
External selling price 80 100
variable cost 60 70
contribution per unit 20 30
labour hours per unit 5 hours 10 hours
what is the mninimum transfer price ? the right answer is 110, I don’t know why.
many thanks
November 14, 2014 at 10:13 am #209900
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
You have asked this elsewhere and it has been answered!
November 18, 2014 at 3:49 am #210841
Hai Yen
Member
- Topics: 17
- Replies: 25
Could you show me the answer, please? I also do not know how to calculate. Thanks.
November 18, 2014 at 10:13 am #210925
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
I am not going to type it out all over again – if you look at the topics in the forum you will find this question repeated and my answer to it.
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