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Company A manufactures a component that can be sold externally for $200 each. Company B, a division of A, requires 1,000 units of this component

  • Company A manufactures a component that can be sold externally for $200 each. Company B, a division of A, requires 1,000 units of this component monthly. Determine the transfer price if Company A uses full cost plus a 20% markup, and if Company A uses market price minus a 10% discount.

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