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Fixed cost per unit of component is 50 what is the minimum

Question - Jason Inc. has a division that manufactures a widget that sells for $300 and has a variable cost of $90. Another division of the company wants to purchase the component. Fixed cost per unit of component is $50. What is the minimum transfer price if the division is operating below its capacity?

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Accounting Basics: Fixed cost per unit of component is 50 what is the minimum

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