Suppose that a selling division can sell all that it produces for $50 per unit. Of that
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Suppose that a selling division can sell all that it produces for $50 per unit. Of that 550, however, $3 represents the costs of distribution (commis- sions, freight, collections, and so on). Assuming that the distribution costs are avoidable if the product is sold internally, what is the minimum transfer price? the maximum transfer price? lop6
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