Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoes and sells them to retailers. The Stitching Division "sells" shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $48. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-101,000 units. The fixed costs for the Polishing Division are assumed to be $17 per pair at 101,000 units.
What is the market-based transfer price per pair of shoes from the Stitching Division to the Polishing Division?
Definitions:
Most Intense
Referring to the highest degree of a certain quality, feeling, or state.
Consecutively
Refers to doing something in a sequence where each event or action follows the previous one without interruption.
Concurrently
Occurring or existing at the same time.
Systematic Desensitization
A behavior therapy technique aimed at reducing phobic or anxiety responses through gradual exposure to the feared object or situation paired with relaxation exercises.
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