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Business, 13.05.2021 01:00 yedida

Benevolent Corporation uses a hybrid transfer pricing scheme for product Y which is produced by its Dallas division and consumed by the Houston division. Specifically, it allows a market price of $90 per unit for the Dallas division and $75 per unit as the transfer price for the Houston division. 2000 units of product Y were transferred during the month of October 2017. As a result of this transfer, Benevolent Corporation would A.
debit a corporate cost account for an amount of $30,000

B.
credit a corporate revenue account for an amount of $30,000

C.
Lose $180,000 in profit

D.
credit Houston with a revenue of $150,000

E.
debit Dallas with a cost of $180,000

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