Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yield on thirty-year u. s. treasury bonds is 10%. you would be indifferent between buying a thirty-year treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield ofa) 6.5%.
b) 7.0%.
c) 9.5%.
d) 10.0%.

Part ar3 costs the southwestern division of luxon corporation $26 to make-direct materials are $10, direct labor is $4, variable manufacturing overhead is $9, and fixed manufacturing overhead is $3. southwestern division sells part ar3 to other companies for $30. the northeastern division of luxon corporation can use part ar3 in one of its products. the southwestern division has enough idle capacity to produce all of the units of part ar3 that the northeastern division would require. what is the lowest transfer price at which the southwestern division should be willing to sell part ar3 to the northeastern division?