The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions:...
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Accounting
The following information relates to Questions 1 and 2 Fragrance Pty Ltd has two divisions: the Perfume Division and the Bottle Division. The company is decentralised and each division is evaluated as a profit centre. The Bottle Division produces bottles that can be used by the Perfume Division which produces perfume. The following information relates to the production of bottles. Bottle Division 50,000 46,000 11,000 3 Production capacity Internal demand from Perfume Division External demand Market price ($) Variable costs per unit ($): -Processing cost -Shipping cost Fixed cost per month ($) 2.5 0.1 25,000 Question 1 Calculate the total opportunity cost Bottle Division will incur if they meet the internal demand from Perfume Division $0 Your last answer was interpreted as follows: 0 Question 2 Calculate the transfer price of one bottle using the general transfer-pricing formula. Please round your answer to 2 dec places. $0 Your last answer was interpreted as follows: 0
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