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A Division Can Sell Externally for $60 Per Unit

Question 41

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 optimal transfer price for transferring internally, assuming the division is operating at capacity?


A) $12.
B) $35.
C) $47.
D) $60.

Correct Answer:

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