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JL Seagull, Inc. has a division that manufactures a widget that sells for $120 and has a variable cost of $80. Another division of the
JL Seagull, Inc. has a division that manufactures a widget that sells for $120 and has a variable cost of $80. Another division of the company wants to purchase the widget from widget division. Fixed cost per unit of widget is $20. If the widget division sells internally, they can save $3 shipping per widget. What is the minimum transfer price if the division is operating at its capacity
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
