Business, 05.05.2020 09:53 medellincolombia99

Southwest Division offers its product to outside markets for $35. It incurs variable costs of $21 per unit and fixed costs of $40,000 per month based on monthly production of 4,500 units. Northeast Division can acquire the product from an alternate supplier for $41 per unit or from Southwest Division for a transfer price of $35 plus $3 per unit in transportation costs.

What are the costs and benefits of the alternatives available to Southwest Division and Northeast Division with respect to the transfer of Southwest Division's product?

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Southwest Division offers its product to outside markets for $35. It incurs variable costs of $21 pe...

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