Question: Buzz s Florida Division is currently purchasing a part from an outside supplier. The company's Georgia Division, which has excess capacity, makes and sells this
Buzzs Florida Division is currently purchasing a part from an outside supplier. The company's Georgia Division, which has excess capacity, makes and sells this part for external customers at a variable cost of $ and a selling price of $ If Georgia begins sales to Florida, it will use the general transferpricing rule and will be able to reduce variable cost on internal transfers by $ If sales to outsiders will not be affected, Georgia would establish a transfer price of:
Multiple Choice
$
$
$
$
None of the answers is correct.
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