COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Division A of XYZ Company is currently operating at full capacity of 10, 000 units. It sells all its production in a perfectly competitive market for P 200 per unit. Its variable cost is P 150 per unit, while total fixed cost amounts to P 100, 000. The minimum transfer price charged to Division B for each unit of product transferred should be
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P 150
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P 160
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P 200
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P 210
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Explanation:
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