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Question 4 of 5 -/1 Vaughn Corporation manufactures car stereos. It is a division of Sheffield Motors, which manufactures vehicles. Vaughn sells car stereos to

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Question 4 of 5 -/1 Vaughn Corporation manufactures car stereos. It is a division of Sheffield Motors, which manufactures vehicles. Vaughn sells car stereos to Sheffield, as well as to other vehicle manufacturers and retail stores. The following information is available for Vaughn's standard unit: variable cost per unit $39, fixed cost per unit $24, and selling price to outside customer $92. Sheffield currently purchases a standard unit from an outside supplier for $86. Because of quality concerns and to ensure a reliable supply, the top management of Sheffield has ordered Vaughn to provide 180,000 units per year at a transfer price of $37 per unit. Vaughn is already operating at full capacity. Vaughn can avoid $2 per unit of variable selling costs by selling the unit internally. Answer each of the following questions. (a) What is the minimum transfer price that Vaughn should accept? Minimum transfer price $ eTextbook and Media Save for Later Attempts: 0 of 15 used Submit Answer 154 AM 10/21/2000 ly BANG & OLUFS ho 2 ins prt sc delete

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