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The Alpha Division of a company, which is operating at capacity, produces and sells 500 units of a certain electronic component in a perfectly competitive

The Alpha Division of a company, which is operating at capacity, produces and sells 500 units of a certain electronic component in a perfectly competitive market. Revenue and cost data are as follows:

Sales $ 12,500
Variable costs 7,500
Fixed costs 2,500

The minimum transfer price that should be charged to the Beta Division of the same company for each component is:

A. $5

B. $15

C. $20

D. $25

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