Multiple Choice
WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating below its capacity?
A) $50
B) $45
C) $30
D) $40
Correct Answer:
Verified
Correct Answer:
Verified
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