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The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not

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The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be: 1. $32 2. \$24 3. $8 4. $22

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