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The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year: Raisin expects identical operating results this year. Assume that the
The Raisin Division of Trail Mix Foods, Incorporated had the following operating results last year: Raisin expects identical operating results this year. Assume that the Raisin Division is currently operating at its capacity of 162,000 pounds of raisins. Also assume that the Peanut Division wants to purchase an additional 32,000 pounds of raisins from the Raisin Division. Under these conditions, what amount per pound of raisins would the Raisin Division have to charge the Peanut Division in order to maintain its current profit? Multiple Choice $0.20 per pound. What is the natural bargaining range for the two divisions? Multiple Choice $74 is the only acceptable transfer price. Between $74 and $118
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