Clarke Company records reveal the following:

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\text { Division } X

\begin{array}{ll}\begin{array}{l}\text { Market price of finished comp onent to } \\\text { outsiders }\end{array} & \$ 32 \\\text { V ariable costs per component }& \underline{24} \\\text { Contribution margin per comp onent } & \underline{\$ 8}\\\text { Total contribution for } 20,000 \text { comp onents } & \underline{\$ 160,000}\end{array}

$Clarke Company records reveal the following: \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Division } X \begin{array}{ll} \begin{array}{l} \text { Market price of finished comp onent to } \\ \text { outsiders } \end{array} & \$ 32 \\ \text { V ariable costs per component }& \underline{24} \\ \text { Contribution margin per comp onent } & \underline{\$ 8}\\ \text { Total contribution for } 20,000 \text { comp onents } & \underline{\$ 160,000} \end{array} The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is working at full capacity, the lowest transfer price it would be willing to accept from Division Y would be: A) $32 B) $22 C) $24 D) $8$ The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is working at full capacity, the lowest transfer price it would be willing to accept from Division Y would be:
A) $32
B) $22
C) $24
D) $8

The Following Information Pertains to Caravan Company The Income Percentage of Revenue Is: A) 25% B) 50

Multiple Choice

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The Following Information Pertains to Caravan Company The Income Percentage of Revenue Is:
A) 25%
B) 50

Correct Answer:
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