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Aurora Division has the capacity to make 1 , 5 0 0 units of an intermediate good that is sold both internally and on the
Aurora Division has the capacity to make units of an intermediate good that is sold both internally and on the open market for a price of $ each. To make the product, Aurora incurs $ of variable cost per unit and $ of fixed costs per unit.
What is the minimum price Aurora would accept for an internal transfer of units of the product if the division is operating at capacity?
Select one:
A
$ each
B
$ each
C
$ each
D
$ each
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