What the minimum transfer price that should be charged

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Question - First Division of Angat Buhay Company is currently operating at full capacity of 5,000 units. It sells all its production in a perfectly competitive market for P250 per unit. Its available cost is P170 per unit, while its tota fixed cost amounts to P300000. What the minimum transfer price that should be charged to Second Division of Angat Buhay Company for each unit of product transferred by First Division?

Reference no: EM133178452

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