#9

The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $55 per unit. Division B is able to supply Division A with 19,100 units at a variable cost of $50 per unit. The two divisions have recently negotiated a transfer price of $51 per unit for the 19,100 units. Enter an increase as a positive number and a decrease as a negative number. a. By how much will each division's income increase as a result of this transfer? Division A Division B b. What is the total increase in income for Hibiscus Company