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Division A has the capacity for making 2703 motors per month and regularly sells 1921 motors each month on the intermediate market at a contribution
Division A has the capacity for making 2703 motors per month and regularly sells 1921 motors each month on the intermediate market at a contribution margin of $52 per motor. A sister division, Division B, would like to obtain 1371 motors each month from Division A. In computing a transfer price per motor using the transfer pricing formula, the lost contribution margin per unit portion of the transfer price computation would be: Select one: 22 34 45 52
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