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5. Southern Pride Industries would like its Alabama Division to sell 30,000 units to its Arkansas Division for a price of $39. The Alabama Division
5. Southern Pride Industries would like its Alabama Division to sell 30,000 units to its Arkansas Division for a price of $39. The Alabama Division is currently operating at full capacity. Alabama Division's unit variable cost is $24, unit fixed cost is $15, and unit selling price is $60. a. What is the minimum transfer price that the Alabama Division would be willing to accept? b. How does the minimum transfer price change if the Alabama Division is operating with excess capacity? c. How does the minimum transfer price change assuming that the Alabama Division can save $3 per unit in variable packing and shipping costs if product is sold internally, and the division is operating at full capacity
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