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1.For Zenith Co. the Processing Division sells a computer module to the company's Assembly Division, which assembles the finished product.The Microprocessor Division is currently working
1.For Zenith Co. the Processing Division sells a computer module to the company's Assembly Division, which assembles the finished product.The Microprocessor Division is currently working at capacity. The computer module costs $10,000 to manufacture, and the finished good units can be sold externally to companies for $13,500 per unit.
a. Using the general transfer pricing rule calculate the transfer price for the computer module.
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