Minimum transfer price if division is operating capacity

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Reference no: EM131219409

Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15. Another division wants to purchase the component. What is the minimum transfer price if the division is operating below capacity?

A. $35 B. $50 C. $65 D. $80

Reference no: EM131219409

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