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Business, 20.12.2019 21:31 fzzyy

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 part for external customers at a variable cost of $27 and a selling price of $39. if georgia begins sales to florida, it (1) will use the general transfer-pricing rule and (2) will be able to reduce variable cost on internal transfers by $4. if sales to outsiders will not be affected, georgia would establish a transfer price of: a. $23. b. $27. c. $35. d. $39. e. none of the answers is correct.

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