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Division A of Sandpiper Inc. makes a component that sells externally for $150. Each unit of the component has $30 of variable cost and $20

Division A of Sandpiper Inc. makes a component that sells externally for $150. Each unit of the component has $30 of variable cost and $20 of allocated fixed costs. Division B needs this component to make the firms main product. What is the transfer price if Division A is operating at its full capacity?

A.

$50

B.

$30

C.

$20

D.

$150

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