Mckenna florida division is currently purchasing a part, Ask an Expert

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McKenna Florida Division is currently purchasing a part from an outside supplier. the company 's, Alabama Division which has excess capacity, makes and sells this part for external customers at a variable cost of $22 and selling price of $34. if Alabama begins sales to Florida, it (1)will use the general transfers-pricing rule and (2)will be able to reduce variable cost on internal transfers by $4. if sales to outsiders will Not be affected, Alabama would establish a transfer price of:

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Financial Management, Finance

Category:- Financial Management
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