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Business, 25.11.2019 22:31 Kurlyash

Sttle manufacturing produces parts for farm equipment. the managerial accountant oversees several large departments. the tractor part is produced in the assembly department. the variable selling expenses and manufacturing costs for the tractor part are listed below: ayle manufacturing variable selling expenses and manufacturing costs specialty component production report direct materials $800 direct labor $100 variable manufacturing overhead $125 fixed manufacturing overhead (current production level) $200 variable selling expenses (only incurred on sales to outside consumers) $125 the managerial accountant noted that the internal division has excess capacity and could produce the part. there is competition in the marketplace and the current price to purchase the part at an outside firm is $2,500. what is the highest transfer price the managerial accountant should pay to purchase the part from a competitor?

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