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When negotiating a transfer price, which price is most acceptable to the selling division if they are operating with idle capacity? the price must cover

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When negotiating a transfer price, which price is most acceptable to the selling division if they are operating with idle capacity? the price must cover at least the variable manufacturing costs of the buying division the price must cover at least the variable manufacturing costs of the selling division the price must cover at least the selling price to outside customers the price must be less than the variable manufacturing costs of the selling division

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