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Blossom Industries produces and sells electronic sound equipment. The company has production capacity of 20100 units and currently production schedule is for 18100 units. Each
Blossom Industries produces and sells electronic sound equipment. The company has production capacity of 20100 units and currently production schedule is for 18100 units. Each unit has a selling price of $20, variable product cost of $10, and variable selling cost of $2. Another division wishes to purchase 510 units. If Blossom sells the units to the other division, it will avoid $1 of the variable selling costs. What is the minimum transfer price that will maximize corporate profits? $12 $10 $11 $20
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