Kitty City Company's Canned Foods division has collected the following information:
Normal selling price $3.90 per can
Variable product costs 2.20 per can
Fixed product costs . 80 per can
Variable selling and administrative costs . 30 per can
Production capacity 2,500,000 cans
The Canned Foods division is currently producing 2,000,500 cans.The company's Dinner Pack division wants to buy 350,000 cans.The minimum transfer price would be
A) $1.10
B) $2.50
C) $3.00
D) $3.30
Correct Answer:
Verified
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A)Provides the
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