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An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: Fabricating Division: Market price of the subassembly
An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: Fabricating Division: Market price of the subassembly Variable cost of the subassembly Excess capacity (in units) Assembly Division: Number of units needed $ 50 $ 20 1,000 900 What is the natural bargaining range for the two divisions? Multiple Choice $50 is the only acceptable price Between $50 and $70 Any amount less than $50. Between $20 and $50 $20 is the only acceptable price
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