Join the IDNLearn.com community and start finding the answers you need today. Our experts provide timely and precise responses to help you understand and solve any issue you face.
Sagot :
Answer:
B. Enough to cover all variable per-unit costs and any contribution margin lost by dropping customers.
Explanation:
As the supplying profit center would be run at the full capacity and earn the profit from selling outside to the customer at full capacity so here the supplying center would have to provide the unit to the other center so it would involve the profit because of the internal transfer and the same should be involved in the transfer price as it would be worked on the full capacity
Therefore the option b is correct
Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Your search for solutions ends at IDNLearn.com. Thank you for visiting, and we look forward to helping you again.
