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Raven, Inc. has a division that manufactures a component that sells for $195 and has a variable cost of $35. Another division of the company

Raven, Inc. has a division that manufactures a component that sells for $195 and has a variable cost of $35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $21. What is the minimum transfer price if the division is operating below its capacity?

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Part 1

A.

$35

B.

$56

C.

$21

D.

$195

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