Business, 30.07.2021 02:00 mkpayton2006

The Can Division of Sheridan Company manufactures and sells tin cans externally for $0.70 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.07, respectively. The Packaging Division wants to purchase 50,000 cans at $0.31 a can. Selling internally will save $0.03 a can. Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept? a) $0.31
b) $0.21
c) $0.24
d) $0.28

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The Can Division of Sheridan Company manufactures and sells tin cans externally for $0.70 per can. I...

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