Saved Christmas Corp., a producer of deluxe wrapping paper, has two divisions: rolling and packaging. The rolling division transfers products to the packaging division. The packaging division sells wrapping paper for $5 per box, but the rolling division is also able to sell unpackaged wrapping paper to retailers for $4 per box. The costs for each division are as follows: Rolling Packaging Variable manufacturing costs per box $3.00 $0.75 Fixed manufacturing costs per box 0.50 0.15 Assuming that the rolling division is at capacity, what is the minimum transfer price that should be charged by the rolling division? 

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The minimum transfer price that should be charged by the rolling division is the variable ... View the full answer