1. without the transfer

Frocks and Gowns, Incorporated, has two divisions, Day Wear and Night Wear. The Day Wear Division has an investment base of $700,000 and produces and sells 101,000 units of Collars at a market price of $10.50 per unit. Variable costs for the Collars total $3.60 per unit, and fixed charges are $4.10 per unit (based on a capacity of 121,000 units). The Night Wear Division wants to purchase 24,000 units of Collars from the Day Wear Division. However, the Night Wear Division is only willing to pay $7.20 per unit. What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Division? Multiple Choice $696,900. $282,800. $982,800. O $727,200