Problem 9 (Transfer Pricing): Norte Division produces bottles and sell it for P20. Total variable cost per unit is P10 while fixed cost per unit
Problem 9 (Transfer Pricing): Norte Division produces bottles and sell it for P20. Total variable cost per unit is P10 while fixed cost per unit is P4. The division's total capacity is 50,000. Sur Division of the same company needs 10,000 bottles and is currently purchasing at P18 from an outside supplier
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