Question
10. Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15.
10. Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15. Another division wants to purchase the component. What is the minimum transfer price if the division is operating below capacity? A. $35 B. $50 C. $65 D. $80
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Financial Accounting
Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington
9th Edition
0070434360, 978-0070434363
