Penn company has a division that manufactures a component, Financial Accounting

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Penn company has a division that manufactures a component

Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15. Another division wants to purchase the component. What is the minimum transfer price if the division is operating below capacity?

A. $35 B. $50 C. $65 D. $80

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Financial Accounting: Penn company has a division that manufactures a component

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