What should be the minimum transfer price for lorain product

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Question - The Lorain Division produces and sells a product to external and internal customers. Per-unit information about its operations include:

Selling price per unit to external customers: $245

Variable manufacturing costs per unit: $185

Fixed manufacturing overhead costs per unit $50

If Lorain has sufficient excess capacity to meet internal demand, what should be the minimum transfer price for Lorain's product?

Reference no: EM132928091

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