Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials...
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Accounting
Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $15, direct labor $9, variable manufacturing overhead $4, fixed manufacturing overhead $9, variable selling and administrative expenses $1, and fixed selling and administrative expenses $10. Using a 30% markup on total per-unit cost, compute the target selling price
The Heating Division of Kobe International produces a heating element that it sells to its customers for $47 per unit. Its variable cost per unit is $29, and its fixed cost per unit is $6. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $31. Assume that the Heating Division has sufficient excess capacity to provide the 14,900 heating units to the other division. What is the minimum transfer price that the Heating Division should accept?
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