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The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include: Outside sales
The Mukilteo Division of Snohomish Corp. produces and sells a product to outside and internal customers. Per-unit data collected from its operations include:
Outside sales price$640Direct materials105Direct labour250Fixed overhead180
If Mukilteo has excess capacity available to meet an internal order, what transfer price should be set?
$625
$355
$430
$285
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