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A Division Can Sell Externally for $60 Per Unit

Question 104

Multiple Choice

A division can sell externally for $60 per unit. Its variable manufacturing costs are $35 per unit, and its variable marketing costs are $12 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?


A) $13.
B) $25.
C) $35.
D) $47.

Correct Answer:

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