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Example 2. Division A makes a product which could be used in Division B's production. A's product has incremental costs of $5/unit. There is no

Example 2. Division A makes a product which could be used in Division B's production. A's product has incremental costs of $5/unit. There is no market for the 2,000 units B wants. Currently A is renting out the extra machine time which could be used to make those 2,000 units for $4,000 in rent revenues per year. Using the general guideline, calculate the transfer price

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