16. Passico has two divisions, Amber division and Crimson division. Amber division, which has an annual capacity
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16. Passico has two divisions, Amber division and Crimson division. Amber division, which has an annual capacity of 20,000 units, manufactures parts at a variable cost of $35 per unit, which sell on the market for $50 per unit. Market demand is currently 10,000 units per year. Crimson division requires 5,000 units per year from Amber division.
In a negotiation, what range would the transfer price fall in?
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Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison
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