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Business, 19.06.2020 23:57 help26852

The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.40 per unit. Its variable cost is $3.24 per unit, and its fixed cost per unit is $1.72. Management would like the fastener division to transfer 12,700 of these zippers to another division within the company at a price of $3.24. The fastener division could avoid $0.15 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price.

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