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Division A has variable manufacturing costs of $54 per unit and fixed costs of $10 per unit. Assuming that Division A is operating at capacity,

Division A has variable manufacturing costs of $54 per unit and fixed costs of $10 per unit. Assuming that Division A is operating at capacity, what is the optimal transfer price of an internal transfer when the market price is $81.0?

A. $27

B. $81

C. $54

D. $17

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