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Division A has variable manufacturing costs of $50 per unit and fixed costs of $10 per unit. Assuming that Division A is operating at capacity, what is the optimal transfer price of an internal transfer when the market price is $75?
Guaranteed Insurability
An optional provision in an insurance contract that allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later on with no questions asked and no medical examination required.
Premiums
Payments made for insurance coverage, often periodically, to keep the insurance policy active and the insured protected against specified risks.
Insurable Interest
The financial interest that a policyholder has in the person or property that is insured.
Life Insurance
An insurance contract that provides monetary compensation for losses suffered by another’s death.
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