7) North Division sells a part internally to South Division. South Division uses the part to...
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7) North Division sells a part internally to South Division. South Division uses the part to produce 0 inexpensive products sold at discount stores. North Division incurs costs of $1.50 per part, while South Division incurs additional costs of $4.80 per product. North Division sells the part to South Division for $2.00 per part. The final product is sold to external customers for $8.00 each. Which of the following formulas correctly reflects the company's operating income? A) $8.00 - $1.50 - $4.80 = $1.70 C) $8.00 - $1.50 – $4.80 - $2.00 = $(0.30) B) $8.00 - $1.50 = $6.50 D) $8.00 - $4.80 -$2.00 = $1.20 %3D %3D 7) North Division sells a part internally to South Division. South Division uses the part to produce 0 inexpensive products sold at discount stores. North Division incurs costs of $1.50 per part, while South Division incurs additional costs of $4.80 per product. North Division sells the part to South Division for $2.00 per part. The final product is sold to external customers for $8.00 each. Which of the following formulas correctly reflects the company's operating income? A) $8.00 - $1.50 - $4.80 = $1.70 C) $8.00 - $1.50 – $4.80 - $2.00 = $(0.30) B) $8.00 - $1.50 = $6.50 D) $8.00 - $4.80 -$2.00 = $1.20 %3D %3D
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Related Book For
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier
Posted Date:
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