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Spring Corp, has two divisions, Daffodil and Tulip Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 140,000 gadgets for
Spring Corp, has two divisions, Daffodil and Tulip Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 140,000 gadgets for $13.30 on the open market. Daffodils variable costs are $6.80 per widget while the full cost is $10.55. Daffodil sells gadgets for $14 each. If Daffodil is operating at capacity, what would be the maximum transfer price Tulip would pay Internally? Multiple Choice 56.80 $10.55 $13:30 $13.80 Spring Corp. has two divisions, Daffodit and Tulip Daffodit produces a gadget that Tulip could use in its production. Tulip currently purchases 105.000 gadgets for $12.60 on the open market Daffodils variable costs are $6 per widget while the full cost is $9.50. Daffodil sells gadgets for $13,10 each. If Daffodil is operating at capacity, what would be the minimum transfer price Daffodil would accept for an internal transfer? Multiple Choice $6.10 O $9.50 $12.60 $13.10
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