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Q: What is the minimum acceptable transfer price for a division with no excess capacity where the variable cost per unit is 9 fixed cost per unit is 11 selling price per unit is 25 bought at 22?
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What is the minimum acceptable transfer price for a division with excess capacity where the variable coat per unit is 8 fixed cost per unit is 5 and selling price per unit is 30?

The minimum acceptable transfer price for a division with excess capacity would be the variable cost per unit, which in this case is 8. This is because the division has excess capacity and is able to produce the goods at a lower cost than the selling price, so it would make sense to transfer the goods to another division or sell them to an external customer at a price that is at least equal to the variable cost per unit. If the division were to transfer the goods to another division or sell them to an external customer at a price that is lower than the variable cost per unit, it would not cover its variable costs and would be operating at a loss. On the other hand, if the division were to transfer the goods to another division or sell them to an external customer at a price that is higher than the variable cost per unit, it would be able to cover its variable costs and potentially earn a profit. It's worth noting that the fixed costs of the division are not relevant to the minimum acceptable transfer price, as these costs have already been incurred and cannot be avoided. The division would need to consider the fixed costs when determining its overall profitability, but they do not affect the minimum acceptable transfer price for the goods. My recommendation: πŸ’‹πŸš π’½β“‰ο½”οΌ°Εœ://Ŵω𝔀.ΰΉ”ΞΉαŽΆΞ―π’π“£ΟŒπ“»α—΄βžβΉ.ΔŒπ‘œο½/𝕣€𝐃ιⓇ/βΈβž†β·βΊοΌ—οΌ–/π“Šπ“·πŠππ•†Κ·π“π“¨π“‚Γ˜ο½•π¬/ β˜―πŸ’€


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