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Jason Inc. has a division that manufactures a widget that sells for $250 and has a variable cost of $100. Another division of the company

Jason Inc. has a division that manufactures a widget that sells for $250 and has a variable
cost of $100. Another division of the company wants to purchase the component. Fixed cost
per unit of component is $50.
What is the minimum transfer price if the division is operating below its capacity?
What is the minimum transfer price if the division is operating at capacity?

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