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P9.55B (LO 6) Pointe Claire Inc. operates as a decentralized multidivisional electronics company. It ha wo divisions. Division A transfers partially completed components to division
P9.55B (LO 6) Pointe Claire Inc. operates as a decentralized multidivisional electronics company. It ha wo divisions. Division A transfers partially completed components to division B at a predeterminec ransfer price. Division A's standard variable production cost per unit is $400. Division A is operating a Full capacity and it could sell all of its components to outside buyers at $520 per unit. Instructions a. Determine an appropriate transfer price for division A. b. How would the transfer price change if division A had excess capacity
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