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What is the minimum transfer price it should accept

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Question - The Can Division of Marigold Corp. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.06, respectively. The Packaging Division wants to purchase 50,000 cans at $0.30 a can. Selling internally will save $0.03 a can.

Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

Reference no: EM132441788

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