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Holiday Corp. has two divisions, Quail and Morlin. Quoil produces a widget that Marlin could use in its production Quail's variable costs are $4 per

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Holiday Corp. has two divisions, Quail and Morlin. Quoil produces a widget that Marlin could use in its production Quail's variable costs are $4 per widget while the full cost is $7. Widgets sell on the open market for $12 each. If Quail has excess capacity, what would be the maximum transfer price if Marlin currently is purchasing 100,000 units on the open market? Multiple Choice

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