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What the minimum transfer price

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Question - The Wood Division of Sandhill Products Inc. manufactures wood mouldings and sells them externally for $165. Its variable cost is $36 per unit, and its fixed cost per unit is $15. Sandhill's president wants the Wood Division to transfer 5500 units to another company division at a price of $51. Assuming the Wood Division has available capacity of 5500 units, what the minimum transfer price it should accept?

Reference no: EM133003471

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