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The Assembly Division of Mounds Corporation Makes a Component Part

Question 172

Essay

The Assembly Division of Mounds Corporation makes a component part that the Packaging Division needs to purchase.The Assembly Division's variable cost of manufacturing the component is $25 per
a.Calculate the cost-based-transfer price that the Assembly division should charge the Packaging division.
b.Calculate the market-based transfer price that the Assembly division should charge the Packaging division.

Correct Answer:

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a.The cost-based price would b...

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