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Chute Company's Extract division has collected the following information.Normal selling price $2.90 ...

trixr4kids

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Chute Company's Extract division has collected the following information.Normal selling price $2.90 ...

Chute Company's Extract division has collected the following information.

Normal selling price

$2.90 per bottle

Variable product costs

1.25 per bottle

Fixed product costs

0.50 per bottle

Variable selling and administrative costs

0.25 per bottle

Production capacity

1,500,000 bottles

Assuming that the division has excess capacity of 300,000 and the Baked Goods division wants to buy 250,000 bottles, the minimum transfer price is

▸ $2.90

▸ $1.50

▸ $2.00

▸ $1.15

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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Smart ... Thanks!

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