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externally for $ 0 . 6 0 per container. Its unit variable costs and unit fixed costs are $ 0 . 2 4 and $
externally for $ per container. Its unit variable costs and unit fixed costs are $ and $ respectively. The Packaging Division wants to purchase containers at $ per unit. Selling internally will save $ a container.
Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept?
A $
B $
C $
D $
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