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A division can sell externally for $76 per unit. Its variable manufacturing costs are $27 per...

A division can sell externally for $76 per unit. Its variable manufacturing costs are $27 per unit, and its variable marketing costs are $18 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?

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Answer #1

Answer:$31

Opportunity Cost of Transferring Internally = Selling Price - Variable Manufacturing Costs - Variable Marketing Costs

Opportunity Cost of Transferring Internally = $76 - $27 - $18 = $31

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