Question: Starlord's Eastern Division is currently purchasing a part from an outside supplier. The company's Western Division, which has no excess capacity, makes and sells
Starlord's Eastern Division is currently purchasing a part from an outside supplier. The company's Western Division, which has no excess capacity, makes and sells this part for external customers at a variable cost of $29 and a selling price of $78. If Western begins sales to Eastern, it will use the general transfer-pricing rule and will be able to reduce variable cost on internal transfer by $10. Western would establish a minimum transfer price of: (Do not round intermediate calculations. Round the final answer to the nearest two decimal places.) Moving to another question will save this response. Question 19 of 25
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