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Q19 NEED FAST. Use the following to answer questions 19 and 20: Jazzy Company's Electronics Division produces hands free audio devices. Their annual capacity is
Q19 NEED FAST.
Use the following to answer questions 19 and 20: Jazzy Company's Electronics Division produces hands free audio devices. Their annual capacity is 100,000 units, the variable cost per unit is $25, their fixed cost per unit at full capacity is $10, and their contribution margin per unit is $40. Jazzy Company's Video Division would like to purchase 20,000 units from the Electronics Division. The Video Division can purchase the same device from an outside supplier for $70 per unit. The Electronics Division is currently producing and selling all 100,000 units. What is the lowest transfer price per unit the Electronics Division is willing to accept? $75 $70 $35 $65 Step by Step Solution
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