Q3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost structure is as the following: Variable Cost 190$ per ton. The North can sell up to 15000 tons to external market at 340$ pen ton. The South usually purchases 3000 units from the market for 300$ and then sell it for 400$. Requirements: 1. If the North currently sells 14000 tons to the market what is the range of transfer price with th South

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q3: Al-Khour group owns two subsidiaries North and South.
North produces and sells Woods; the cost structure is as the following:
Variable Cost 190$ per ton. The North can sell up to 15000 tons to external market at 340$ per
ton.
The South usually purchases 3000 units from the market for 300$ and then sell it for 400$.
Requirements:
1. If the North currently sells 14000 tons to the market what is the range of transfer price with th
South.
Transcribed Image Text:Q3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost structure is as the following: Variable Cost 190$ per ton. The North can sell up to 15000 tons to external market at 340$ per ton. The South usually purchases 3000 units from the market for 300$ and then sell it for 400$. Requirements: 1. If the North currently sells 14000 tons to the market what is the range of transfer price with th South.
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