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WAX-D Inc. has a division that manufactures a component that sells in the open market for $150 and has a variable cost of $45. Fixed

WAX-D Inc. has a division that manufactures a component that sells in the open market for $150 and has a variable cost of $45. Fixed cost per unit of component is $25. Another division of the company wants to purchase the component. What is the transfer price if the manuafacturing division is operating at capacity?

a. $55

b.$45

c. $150

d. $140

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