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inkster inkster
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A month ago
Kitty City Company's Canned Foods division has collected the following information:

Normal selling price $3.90 per can
Variable product costs  2.20 per can
Fixed product costs 0.80 per can
Variable selling and administrative costs0.30 per can
Production capacity2,500,000 cans

The Canned Foods division is currently producing 2,000,500 cans. The company's Dinner Pack division wants to buy 350,000 cans. The minimum transfer price would be

▸ $3.30

▸ $3.00

▸ $2.50

▸ $1.10
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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jchang19jchang19
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A month ago
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$2.50

Since Kitty City's Canned Foods division has enough excess capacity, the minimum transfer price is equal to the variable costs of $2.50 per can.
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inkster Author
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A month ago
This helped my grade so much Perfect
avance37
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Yesterday
Good timing, thanks!
IvanaVR
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2 hours ago
this is exactly what I needed
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