Mazuka,Inc

question 29

Multiple Choice

Mazuka,Inc.has a division that manufactures a component that sells for $165 and has a variable cost of $35.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $22.What is the transfer price if the division is operating at full capacity?

• A) $57
• B) $187
• C) $165
• D) $22

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