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Division A manufactures a circuit board component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of

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Division A manufactures a circuit board component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per unit for sales to outside parties only. Division Buses this component in the manufacture of its own circuit board production activities Top management allows negotiated transfer pricing. If Division A is operating at full capacity, the minimum transfer price (the floor of the bargaining range) is: Osu so 538

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