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Boler, Inc. is currently acquiring a key component from its sister company, Soler, Inc. at a transfer price of $15 per unit. Soler's variable cost
Boler, Inc. is currently acquiring a key component from its sister company, Soler, Inc. at a transfer price of $15 per unit. Soler's variable cost of purchasing the unit is $6, and its fixed cost per unit is $5 per unit. Soler does not have any excess capacity and can sell all it makes to external customers at $15 per unit. Boler has been offered a price of $13 per unit for the component from another vendor and is insisting that Soler reduce its price to $13. Which of the following statements below is false regarding this scenario? Select one: A. Boler should not accept the outside offer because the variable cost of purchasing it inside is only $6 per unit. B. Boler should purchase the unit externally because the internal cost of purchasing the unit internally is a variable cost of $6 per unit plus an opportunity cost of $9 per unit, or $15. C. Since Soler is operating at full capacity and has other external customers ready to purchase additional units, the best transfer price is its regular market price. D. The company will be better off if Soler rejects Boler's demand and instead sells the units that Boler would buy to outside customers
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