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The Can Division of Marigold Corp. manufactures and sells recyclable containers externally for $0.90 per container. Its unit variable costs and unit fixed costs are
The Can Division of Marigold Corp. manufactures and sells recyclable containers externally for $0.90 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively. The Packaging Division wants to purchase 50,000 containers at $0.38 per unit. Selling internally will save $0.05 a container. Assuming that the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $075 $0.43 $0.85 $0.52
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