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Assume there are no avoidable costs with an internal sale (variable costs equal $7) and that Buying Division buys 50,000 units from Selling Division. Complete

Assume there are no avoidable costs with an internal sale (variable costs equal $7) and that Buying Division buys 50,000 units from Selling Division. Complete the table for each transfer price:

Transfer Price Transfer Price
$30 $14
Increase in net income of Selling Division
Increase in net income of Buying Division
Increase in net income of Overall Corporation

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