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Question 3 (8 marks) Marvelous Muffins has identified several processes required to produce one blueberry oatmeal muffin. The company treats each process as a separate
Question 3 (8 marks) Marvelous Muffins has identified several processes required to produce one blueberry oatmeal muffin. The company treats each process as a separate division and charges transfer prices between internal processes. The company sells 47,000 muffins in one year. Purchasing Baking Packaging Customer Service Cost per $0.65 $0.35 $0.15 $0.35 muffin Transfer price $1.05 $1.65 $1.85 $2.45 to next process a) Calculate the profit for each division. (6 marks) b) Calculate total yearly profit for Marvelous Muffins. (2 marks)
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