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Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures

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Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 63 $ 41 $ 4 20,000 Division B could use Division A's product as a component part in the manufacture of 4.000 units of its own newly designed product Division Bhos received a quote of $58 from an outside supplied for a component part that is comparable to the one thar Division A makes at the company's divisional managers are evaluated based their division's profits and Division Als currently selling 18.000 units on the outside market what is Division As lowest acceptable transfer price if it were to sell 4000 units to Division B? BN L If the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what is Division As lowest acceptable transfer price if it were to sell 4,000 units to Division B? Muluple Choice $5200 55500 52200 30

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