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Determining the transfer price of x

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A firm has a division that produces X, whose total costs are TC = 10 + Q2 (where Q is the quantity of X). The marketing division adds its own total costs of 5 + 3Q. In the competitive external market for X, the wholesale price is $10. The transfer price of X should be:

a. $2.

b. $5.

c. $10.

d. $12.

e. $15.

Thank you for your help with this problem!

Reference no: EM131692448

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