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Bosc Pear manufactures bottles in its glass Division A, which are then transferred to its packaging Division B. In the upcoming month, 260,000 bottles will
Bosc Pear manufactures bottles in its glass Division A, which are then transferred to its packaging Division B. In the upcoming month, 260,000 bottles will be transferred to Division B from Division A, where they are filled and then sold at $6.50 per bottle. The bottles can be sold from Division A to other bottlers at $4.70 per bottle. The costs provided relate to total manufacturing budgeted costs for the 260,000 bottles. (Click the icon to view the costs data.) Requirement 1. Calculate the operating income for Division B under the market price transfer-pricing method. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for an operating loss.) Costs data 1. Calculate the operating income for Division B under the market price transfer-pricing method. 2. Calculate the operating income for Division A under the market price transfer-pricing method. 3. What are the three benefits of the arrangement between Division A and B
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