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Raphael, Inc. has a division that manufactures a component that sells for $185 and has a variable cost of $40. Another division of the company

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Raphael, Inc. has a division that manufactures a component that sells for $185 and has a variable cost of $40. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $22. What is the minimum transfer price if the division is operating below its capacity? A. $40 B. $22 C. $185 D. $62

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