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Sheridan Corporation manufactures wireless soundbar speakers. It is a division of Vany TV which manufactures televisions. Sheridan sells the speakers to Vany as well as
Sheridan Corporation manufactures wireless soundbar speakers. It is a division of Vany TV which manufactures televisions. Sheridan sells the speakers to Vany as well as to retail stores. The following information is available for Sheridan's speaker: unit variable cost $60; unit fixed cost $48; and a unit selling price of $132 to outside customers. Vany currently purchases speakers from an outside supplier for $124 each. Top management of Vany would like Sheridan to provide 46,000 speakers per year at a transfer price of $60 each. (a) Compute the minimum transfer price that Sheridan should accept assuming Sheridan is operating at full capacity
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