Question
The Apple Division of a company, which is operating at capacity, produces and sells 1,000 units of a certain electronic component in a perfectly competitive
The Apple Division of a company, which is operating at capacity, produces and sells 1,000 units of a certain electronic component in a perfectly competitive market. Revenue and cost data are as follows.
| Sales | $50,000 |
| Variable costs | 34,000 |
| Fixed costs | 12,000 |
The minimum transfer price that should be charged to the Banana Division of the same company for each component is
A. $12
B. $34
C. $46
D. $50
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The ASQ Certified Quality Auditor Handbook
Authors: Lance B Coleman
5th Edition
1951058097, 978-1951058098
