Mazuka,Inc

question 46

Multiple Choice

Mazuka,Inc.has a division that manufactures a component that sells for $150 and has a variable cost of $45.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the transfer price if the division is operating at full capacity?

• A)$65
• B)$170
• C)$150
• D)$20

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