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Assume the Transfer Price for a Compressor Is 150% of Total

Question 25

Multiple Choice

Assume the transfer price for a compressor is 150% of total costs of the Compressor Division and 1,000 of the compressors are produced and transferred to the Fabrication Division.The Compressor Division's operating income is ________.


A) $15,875
B) $16,375
C) $17,375
D) $18,250

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