Comfy Cushion Company manufactures cushions. The Cover Division manufactures cushion covers and the Production Department...
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Comfy Cushion Company manufactures cushions. The Cover Division manufactures cushion covers and the Production Department manufactures the cushion inserts. The cushion covers can be sold separately for $12.50. The Production Department has no excess capacity. The cushion inserts variable manufacturing cost per unit is $5.50 and they can be sold in the external market for $9.50 each. The transfer price per unit for the cushion inserts using the general transfer pricing rule is: Select one: O a. $5.50 O b. $9.50 O c. $12.50 O d. $18 12 F C GENG
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