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Question 14 5 pts Pharma Co. is a pharmaceutical consisting of two divisions. Division 1 manufactures drugs and sells them to Division 2, which carries
Question 14 5 pts Pharma Co. is a pharmaceutical consisting of two divisions. Division 1 manufactures drugs and sells them to Division 2, which carries out quality control and distributes drugs. The costs of Division 1 are as follows. per pack $44 Direct Materials Direct Labor $43 Variable Overhead $46 $40 Fixed Overhead Additional variable costs Division 2 incurs are $53 per pack. To facilitate interaction between divisions, Pharma Co. uses a transfer price determined according to the cost-based method computed for variable costs of manufacturing drugs and the mark up of 26%. What is the transfer price of a pack
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