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

Holiday Corporation has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4.10 per widget while the full cost is $7.10. Widgets sell on the open market for $12.20 each. If Quail has excess capacity, what would be the minimum transfer price if Marlin currently is purchasing 105,000 units on the open market?
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$12.20
$4.10
$7.10
$5.10

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