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C. is $19 & D. is $53.50 Assume a company has two divisions, Division A and Division B. Division A has provided the following information

C. is $19 & D. is $53.50

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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) $ 63 Variable cost per unit $ 44 Fixed costs per unit (based on capacity) $ 4 Capacity in units 20, 008 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 B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. 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 A's lowest acceptable transfer price if it were to sell 4,000 units to Division B? Multiple Choice O $56.00 O $58.00

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