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Question 1 (8 marks) The CE Bakery has identified several processes required to produce one cupcake. The company treats each process as a separate division
Question 1 (8 marks) The CE Bakery has identified several processes required to produce one cupcake. The company treats each process as a separate division and charges transfer prices between internal processes. The company sells 45,000 cupcakes in one year. Purchasing Baking Packaging Customer Service Cost per $0.95 $0.50 $0.35 $0.40 cupcake Transfer price $1.15 $1.75 $2.20 $2.85 to next process a) Calculate the net profit for each division. (6 marks) b) Calculate total yearly profit for the CE Bakery. (2 marks)
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