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A company is divided at tagement and Segment. Segment wants to purchase 2,000 units of the goods produced in Segment A. The company has
A company is divided at tagement and Segment. Segment wants to purchase 2,000 units of the goods produced in Segment A. The company has a policy of using cost-based transfer pricing. Normally, transfer price is determined by adding a 25% Hos on cost. The folowing casts pertains the products produced in Segment A Dect Materials Labor Venable Manufacturing Overhead Fed Manufacturing Overhead Seling General and Altrative Co Per Unit Tutal (2.000 unita $20 $14 10,000 $10.000 Bound af avows in Transfer Price What is the arfer price urged te a un sit by Segment A to Segment of fut cost is used as the cost The Price o
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