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The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed
The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Vaughn's president wants the Wood Division to transfer 4000 units to another company division at a price of $30. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $7. O $25. $55. O $30
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