Materials used by the Instrument Division of Dart Industries are currently purchased from outside suppliers at a
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a. If a transfer price of $ 145 per unit is established and 40,000 units of materials are transferred, with no reduction in the Components Division’s current sales, how much would Dart Industries’ total income from operations increase?
b. How much would the Instrument Division’s income from operations increase?
c. How much would the Components Division’s income from operations increase?
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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