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QUESTION 43 Evergreen Corp. has two divisions, Fern and Bark. Fem produces a widget that Bark could use in the production of units that cost
QUESTION 43 Evergreen Corp. has two divisions, Fern and Bark. Fem produces a widget that Bark could use in the production of units that cost $232 in variable costs, plus the cost of the widget, to manufacture, Fern's variable costs ar 50% per wind fixed manufacturing costs are applied at a rate of $56 per widget.Widgets sell on the open market for $183 cach. Evergreen's policy is that internal transfers will be made at full cost. If Bark purchases the widgets from Fom, what will be the transfer price? a. $232 b. $143 C. $98 od. $154
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