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S24-13 Henderson Company manufactures electronics. The Calculator Division (an investment center) manufactures handheld calculators. The division can purchase the batteries used in the calculators from
S24-13 Henderson Company manufactures electronics. The Calculator Division (an investment center) manufactures handheld calculators. The division can purchase the batteries used in the calculators from Battery Division (another investment center) or from an outside vendor. The cost to purchase batteries from outside vendor is $5. The transfer price to purchase from the Battery Division is $6, and the variable cost is $3. The Battery Division has excess capacity.
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