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The can Division of Fruit Products Inc. Manufactures and sells tin cans externally for $0.30 per can. Its unit variable costs and unit fixed costs
The can Division of Fruit Products Inc. Manufactures and sells tin cans externally for $0.30 per can. Its unit variable costs and unit fixed costs are $0.12 and $0.04, respectively. The packaging division wants to purchase 50,000 cans at $0.16 a can. Selling internally will save $0.01 a can. Q: Assuming the can Division has sufficient capacity, what is the minimum transfer price it should accept? A) $0.15 B)$0.12 C)$0.16 D)$0.11
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