Determine the minimum transfer price for the screen division

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Question - Crane Company operates as a decentralized multidivisional electronics company. Its laptop division buys most of its monitors from the screen division. The screen division's incremental costs for manufacturing the monitors are $210 per unit. The screen division is currently working at 65% of capacity. The monitor's current market price is $240 per unit.

Using the general approach to transfer pricing, determine the minimum transfer price for the screen division.

Reference no: EM133126151

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