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I don’t understand why the transfer of cost is multiplied with 14000units but the v.cost is multiplied with 7000 units in this question
You must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
It is because the question says that division B uses 2 units of the component from Division A for every item that they make and sell. They sell 7,000 units and so they need 14,000 components.
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