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Assume the Transfer Price for a Pair of Shoes Is

Question 22

Multiple Choice

Assume the transfer price for a pair of shoes is 180% of total costs of the Stitching Division and 40,000 of soles are produced and transferred to the Polishing Division.The Stitching Division's operating income is ________.


A) $896,000
B) $720,000
C) $800,000
D) $880,000

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