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Cherry co BPP pg 100

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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May 17, 2021 at 7:36 pm #620863
Shi2004
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Hello sir for num 294, for the minimum transfer price why the opportunity cost is 0?
May 18, 2021 at 8:34 am #620916
John Moffat
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The question should really say that A has spare capacity for 15,000 units.
So producing for Division B would not lose any external sales and so no lost contribution.
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