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Question 24 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $92 per unit, with
Question 24 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $92 per unit, with the following costs based on its capacity of 182,000 units: Direct materials Direct labour Variable overhead Fixed overhead 10 Division A is operating at 70% of normal capacity and Division B is purchasing 28,000 units of the same component from an outside supplier for $87 per unit. Calculate the benefit, if any, to Division A in selling to Division B the 28,000 units at the outside supplier's price Benefit LINK TO TEXT Calculate the lowest price Division A would be willing to accept Lowest price If Division A is operating capacity, what would be the lowest transfer price that it is willing to accept
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