The Wood Division of Cullumber Products Inc. manufactures wood mouldings and sells them externally for...
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The Wood Division of Cullumber Products Inc. manufactures wood mouldings and sells them externally for $125. Its variable cost is $31 per unit, and its fixed cost per unit is $12. Cullumber's president wants the Wood Division to transfer 5000 units to another company division at a price of $43. Assuming the Wood Division has available capacity of 5000 units, the minimum transfer price it should accept is
$125.
$31.
$12.
$43.
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