=+E14-20 Decision on transfer pricing Ob] 5 / a. $1,000,000 Materials used by the Industrial Division ofCrow
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=+E14-20 Decision on transfer pricing Ob] 5
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a. $1,000,000 Materials used by the Industrial Division ofCrow Manufacturing are currently purchased from outside suppliers at a cost of $120 per unit. However, the same materials are available from the Materials Division. The Materials Division has unused capacity and can produce the materials needed by the Industrial Division at a variable cost of $95 per unit.
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