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Crush Company Makes Internal Transfers at 160% of Full Cost

question 64

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Crush Company makes internal transfers at 160% of full cost.The Soda Refining Division purchases 40,000 containers of carbonated water per day,on average,from a local supplier,who delivers the water for $40 per container via an external shipper.To reduce costs,the company located an independent supplier in Illinois who is willing to sell 40,000 containers at $30 each,delivered to Crush Company's Shipping Division in Missouri.The company's Shipping Division in Missouri has excess capacity and can ship the 40,000 containers at a variable cost of $4.50 per container.What is the total cost of purchasing the water from the Illinois supplier and shipping it to the Soda Division?

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Definitions:

Labeled Points

In the context of machine learning and data science, data points that are assigned a specific label or category for classification.

Hormonal Regulation

The control of bodily functions through the secretion and action of hormones.

Sodium Reabsorption

The process by which sodium ions are reabsorbed by the kidney from the urine, allowing for water reabsorption and blood pressure regulation.

Labeled Regions

Designated areas or segments that are marked for identification, study, or tracking purposes, often in the context of scientific research.

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