A companys two divisions have transactions between them related to material purchases. Division 1 previously bought assemblies from another company for $45.37 which Division 2
A companys two divisions have transactions between them related to material purchases. Division 1 previously bought assemblies from another company for $45.37 which Division 2 can provide for $42.35. It costs Division 2 $38.75 to make the parts.
Required: Assuming that Division 1 needs 250,000 assemblies, calculate the increase in income for each division from making this change.
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Authors: J.K. Mitra
1st Edition
8122425941, 978-8122425949
