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Division a Has Variable Manufacturing Costs of $25 Per Unit

Question 43

Multiple Choice

Division A has variable manufacturing costs of $25 per unit and fixed costs of $5 per unit. Division A is operating at capacity. What is the opportunity cost of an internal transfer when the market price is $35?


A) $5.
B) $10.
C) $25.
D) $30.

Correct Answer:

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