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Home Q & A Board Other Fields Homework Help Business Accounting
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carlvh37 carlvh37
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A year ago
Rivers Industries produces and sells electronic sound equipment. The company has production capacity of 20,000 units and currently production schedule is for 18,000 units. Each unit has a selling price of $25, variable product cost of $15, and variable selling cost of $2. Another division wishes to purchase 500 units. If Rivers sells the units to the other division, it will avoid $1 of the variable selling costs. What is the minimum transfer price that will maximize corporate profits?

▸ $15

▸ $16

▸ $25

▸ $17
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Managerial Accounting

Managerial Accounting


Edition: 4th
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hadu582hadu582
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A year ago
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