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Pointe Claire Inc operates as a decentralized multidivisional electronics company It has two divisions Division A transfers partially completed components to division B at a predetermined transfer

Pointe Claire Inc. operates as a decentralized multidivisional electronics company. It has two divisions. Division A transfers partially completed components to division B at a predetermined transfer price. The division A s standard variable production cost per unit is $400. Division A is operating at full capacity and it could sell all of its components to outside buyers at $520 per unit. Instructions (a) Determine an appropriate transfer price for division A. (b) How would the transfer price change if division A had excess capacity?

Jun 25 2020 View more View Less

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