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6- Rexon Corporation has two divisions, Refining and Extraction. The company's primary product is Motor Oil. Each division's costs are provided below: Assume 200 barrels
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Rexon Corporation has two divisions, Refining and Extraction. The company's primary product is Motor Oil. Each division's costs are provided below: Assume 200 barrels are transferred from the Extraction Division to the Refining Division for a transfer price of $18 per barrel. The Refining Division sells the 200 barrels at a price of $138 each to customers. What is the operating income of both divisions togetherStep by Step Solution
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