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Taylor, Inc. has a division that manufactures a component that sells for $57 and has...

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Accounting

Taylor, Inc. has a division that manufactures a component that sells for $57 and has a variable cost of $31. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $7. What is the minimum transfer price if the division manufacturing the component is operating below its capacity?
A. $31
B. $7
C. $57
D. $38
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