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The Jet Engine Division Provides Engines for the Jet Plane

Question 96

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The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows: The Jet Engine Division provides engines for the Jet Plane Division of a company. The standard unit costs for the Jet Engine Division are as follows:   The engine department has excess capacity. What is the best transfer price to avoid transfer price problems? A)  $1,350 B)  $900 C)  $2,100 D)  $300 The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?


A) $1,350
B) $900
C) $2,100
D) $300

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