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Tuttle Motorcycles Inc manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division
Tuttle Motorcycles Inc manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division It has been decided that the Engine Division will sel 20,000 units to the Production Division M 51050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2.550 and unit variable costs and fixed costs of 51.05 and 5750 respectively. The Production Division is currently paying $2,400 per unit to an outside supplier $100 per unit can be saved on internal sales from reduced selling expenses What is the minimum transfer price that the Engine Division should accept
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