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Question 15 (1 point) Companies can set transfer prices to shift profits between the buyer and seller divisions of national companies to lower their overall
Question 15 (1 point) Companies can set transfer prices to shift profits between the buyer and seller divisions of national companies to lower their overall taxes, duties, and tariffs. True False Question 16 (2 points) B.B. Chick owns a factory that produces 22,000 eggs per year that are used for the production of their baskets. B.B. Chick has ample capacity to produce these eggs. B.B. Chick was recently approached by an outside supplier (Chick E. Little) that offered to produce the eggs for $12 per egg. B.B. Chick has provided the following information about the costs associated with producing their eggs: Per unit costs Costs at production of 22,000 eggs Direct materials $154,000 Direct labour 53 $66,000 Variable manufacturing 51 $22,000 overhead Allocated common Fixed 52 $44,000 manufacturing overhead Total 513 $286,000 What is the maximum price B.B. Chick would be willing to pay Chick E. Little for the eggs? $222,000 $286,000 $242,000 $264,000
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