If Cohasset would like to develop a range of transfer prices,what would be the minimum transfer price that Hurley would be willing to accept?
A)$1.00
B)$1.10
C)$1.25
D)$1.30

Question

Quizplus · Accepted Answer

Hurley's variable costs are $1.00 per unit, and he wants to earn a profit of at least $0.10 per unit. Therefore, the minimum transfer price he would be willing to accept is the sum of his variable costs and desired profit, which is $1.10.

If Cohasset Would Like to Develop a Range of Transfer