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What would be the range of acceptable transfer prices

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Materials used by Ford Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $20 per unit.

Question 1: If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places.

Reference no: EM132587249

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