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Spring Corporation has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 100,100 gadgets for

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Spring Corporation has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 100,100 gadgets for $12.00 on the open market. Daffodi's variable costs are $6.05 per widget whille the full cost is $9.40. Daffodil sells gadgets for $12.50 each. If Daffodil is operating at less than full capacity, what would be the minimum transfer price Daffodil would accept for an internal transfer? Multiple Choice $6.05 $240 $12.00 $1250

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