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Collins Inc. has a division that manufactures a component that sells for $270 and has...

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Accounting

Collins Inc. has a division that manufactures a component that sells for $270 and has a variable cost of $135. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $53. What is the minimum transfer price if the division manufacturing the component is operating at capacity?
A. $53
B. $270
C. $188
D. $135
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