What price should another division pay for mukilteo product


Question: The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: Outside sales price$640Direct materials105Direct labour250Fixed overhead180 If Mukilteo is operating at full capacity and selling solely to outside customers, what price should another division pay for Mukilteo's product? a) $285b) $625c) $640d) $480

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Accounting Basics: What price should another division pay for mukilteo product
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