Using the Formula in the Text, If the Lowest Acceptable

question 170

Multiple Choice

Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the selling division is $75 and the opportunity cost per unit on outside sales is $24, then the variable cost per unit must be:

• A) $24 per unit
• B) $99 per unit
• C) $51 per unit
• D) $75 per unit

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