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Management of the Oriole Company would like the Food Division to transfer 10800 cans of its final product to the Restaurant Division for $38. The
Management of the Oriole Company would like the Food Division to transfer 10800 cans of its final product to the Restaurant Division for $38. The Food Division sells the product to customers for $78 per unit. The Food Divisions variable cost per unit is $41 and its fixed cost per unit is $10. If the Food Division has 10800 units available capacity, what is the minimum transfer price the Food Division should accept?
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