Division 1 sells one of its products to Division 2. The product cost is 160...
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Accounting
Division 1 sells one of its products to Division 2. The product cost is 160 for materials, 60 for direct labour, 10 for variable overheads and 110 for fixed overheads. Division 1 sets the profit margin equal to 40% of the variable cost. What is the transfer cost if Division 1 is operating at full capacity?
160
340
230
432
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