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Division A of Chappelle Company has the capacity for making 3,600 motors per month and regularly sells 2,100 motors each month to outside customers at
Division A of Chappelle Company has the capacity for making 3,600 motors per month and regularly sells 2,100 motors each month to outside customers at a contribution margin of $68 per motor. The variable cost per motor is $41.70. Division B of Chappelle Company would like to obtain 2,000 motors each month from Division A. What should be the lowest acceptable transfer price from the perspective of Division A? Multiple Choice O $41.70. O $58.70 O $34.07. O $68.00
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