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Jamison Textiles has two divisions. One division makes bolts of cloth, and the other division makes t-shirts. The cloth division makes two square yards of
Jamison Textiles has two divisions. One division makes bolts of cloth, and the other division makes t-shirts. The cloth division makes two square yards of cloth for $0.27 but sells the cloth to customers for $0.45. The t-shirt division can make t-shirts for $0.59 plus the cost of 2 square yards of cloth and sells t-shirts for $6.00. The company can purchase cloth from a different company for $0.43 per two square yards. If the company wants to use a negotiated transfer price to sell cloth from the cloth division to the t-shirt division, what should the minimum and maximum transfer costs be? Assume the cloth division has excess capacity. Minimum = $0.43, Maximum = $0.45 Minimum = $0.27, Maximum = $0.43 Minimum = $0.45, Maximum = $0.59 Minimum = $0.27, Maximum = $0.59
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