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Please show how to solve. Thank you The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price
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The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $147 per engine. The Engine Division is currently operating at a capacity of 46056 engines per year and is currently selling 37220 engines annually. The variable cost of producing an engine is $102. The Snowmobile Division of the Taylor Corporation currently purchases 19198 engines from an external supplier at a cost of $142 per engine What is the maximum transfer price for a transfer of 19198 engines from the Engine Division to the Snowmobile Division? Select one: a. $126.29 O b. $142.00 c. $102.00 d. $122.71Step by Step Solution
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