Business, 25.04.2020 01:52, kenz391

Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division’s variable cost per unit is $35 and its fixed cost per unit is $10. If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?

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Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final...