Page 146 - APM Integrated Workbook STUDENT S18-J19
P. 146
Chapter 9
Scenario 3: The selling division does not have surplus capacity
Transfer price
negotiated between
Minimum price selling division Maximum price buying
will accept is marginal cost + division will pay is same as
lost contribution from other scenario 2.
product (opportunity cost).
Illustrations and further practice
Now try TYU question 8 and read Illustration 4 from Chapter 9 of the Study
Text.
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