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Katsen Company Can Sell Its Products to an External Market

Question 2

Multiple Choice

Katsen Company can sell its products to an external market for $150 per unit.The division's variable manufacturing costs are $45 per unit and fixed manufacturing costs are $9 per unit.If the division is operating at full capacity,what would be the opportunity cost of selling internally?


A) $150
B) $45
C) $96
D) $105
E) None of the answer choices is correct.

Correct Answer:

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