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Question 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B. Division A produces car stereos that it sells to retail stores for
Question 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B. Division A produces car stereos that it sells to retail stores for a price of $95 per unit. Its full capacity is 260,000 units, but it currently sells 223,900 units. It incurs the following costs in its production: Direct materials Direct labour Variable overhead Fixed overhead 40 26 12 Division B is purchasing 17,900 units of the same stereo from an outside supplier for$86 per unit. (a) Calculate the minimum transfer price Division A is willing to accept. Minimum transfer price LINK TO TEXT Attempts: of 1 used SAVE FOR LATER SUBMIT ANSWED
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