$$150$ of the $$193$ per unit represents materials costs, and the remaining $$43$ per unit represents other variable conversion expenses incurred within the Commercial Division. materials between divisions, no changes are expected in sales and expenses.

Required:

Would the market price of $$150$ per unit be an appropriate transfer price for Garcon Inc.?

No $v$

The Consumer Dlvision's operating income would increase by

$$31,68$

The Commercial Division's operating income would increase by

$$100,8$

Garcon Inc.$\text{'}$s total operating income would increase by

$132,4$

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$3.$ Prepare condensed divisional income statements for Garcon Inc. based on the data in part $(2),$

Garcon Inc.

Garcon Inc. Divislonal Income Statements the Year Ended December $31.$

For the Year Ended December $31,20$Y:

$4.$ If a transfer price of $126$ per unit is negotiated, how much would the operating income for each division and the total company operating income increase

The consumer divions operating income would increase by $?$

The commercial divisions operating increase would increase by $?$

garcon inc total operating income would increase by$?$

$5$ assuming that the managers of the two divions cannot agree on a transfer price, what price would you sugget as the transfer price $?$