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Division A has variable manufacturing costs of $61 per unit and fixed costs of $14 per unit. Assuming that Division A is operating at capacity,

Division A has variable manufacturing costs of $61 per unit and fixed costs of $14 per unit. Assuming that Division A is operating at capacity, what is the opportunity cost of an internal transfer when the market price is $83?

Multiple Choice

  • $22.

  • $75.

  • $28.

  • $61.

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