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Energy for All has several divisions, including the Solar Division, a manufacturer of solar panels, and the Wind Division, a manufacturer of wind turbines. The
Energy for All has several divisions, including the Solar Division, a manufacturer of solar panels, and the Wind Division, a manufacturer of wind turbines. The Solar Division manufactures the Home Lite that can be used by the Wind Division in a bundled product that provides both solar and wind power to customers. The market price of Home Lite is $550, and the cost information is as follows: Variable manufacturing cost per unit $300 Fixed cost per unit 50 Variable selling overhead per unit 50 Total cost $400 Determine the minimum transfer price per unit of Home Lite that can be set by the Solar Division when Energy for All allows negotiated transfer pricing. Assume that the Solar Division would avoid the selling overhead because it is selling within the company
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