Question raphael inc has a division that manufactures a, Ask an Expert

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Question: Raphael, Inc. has a division that manufactures a component that sells for $190 and has a variable cost of $35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $22. What is the minimum transfer price if the division is operating below its capacity?

A) $190

B) $22

C) $35

D) $57

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92573837

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