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The Can Division of Sheffield Corp. manufactures and sells tin cans externally for $0.90 per can. Its unit variable costs and unit fixed costs are
The Can Division of Sheffield Corp. manufactures and sells tin cans externally for $0.90 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.13, respectively. The Packaging Division wants to purchase 50,000 cans at $0.37 a can. Selling internally will save $0.03 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept? O $0.24 $0.37 0 $0.34 $0.21
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