Crane Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Retail Division. It has been decided that the Engine Division will sell 26000 units to the Retail Division at $ 1050 a unit. The Engine Division, currently operating at capacity, has a unit selling price of $ 3150 and unit variable costs and unit fixed costs of $ 1050 and $ 800, respectively. The Retail Division is currently paying $ 3000 per unit to an outside supplier. If the product is sold internally, $ 90 per unit can be saved on reduced selling expenses. What is the increase/decrease in overall company profits if this transfer takes place? O Decrease $ 3900000 O Increase $ 50700000 O Decrease $ 1560000 O Increase $3150000

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer