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Sandpiper Inc. has a division that manufactures a component that sells for $165 and has...

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Accounting

Sandpiper Inc. has a division that manufactures a component that sells for $165 and has a variable cost of $45. Another division of the company wants to purchase the component Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating at capacity?
A. $165
B. $45
C. $20
D. $65
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