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Dakoil Corporation has two divisions, Refining and Production The company's primary product is Enkoil Oil Each division's costs are provided below Production: + Variable costs
Dakoil Corporation has two divisions, Refining and Production The company's primary product is Enkoil Oil Each division's costs are provided below Production: + Variable costs per barrel of oil-- Fixed costs per-barrel of oil Refining: Fixed costs per barrel of oil S3- $2- Variable-costs per-barrel of oil $10- $12 The Refining Division has been operating at a capacity of 40.000 barrels a day and usually purchases 25.000 barrels of oil from the Production Division and 15.000 banrals bom other suppliers at $20 per barrel What is the transfer price per barrel from the Production Division to the Refining Division, assuming the method used to place a value on each barrel of oll is 110% of full costs? $5 50 $22.00 $24.20 O $29 70 Question 37 of 40 A Moving to the next question prevents changes to this answer hp dalata LBACKLONCA
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