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Cranergy Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting's output is converted
Cranergy Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvesting's output is converted into cranberry juice by the processing division, and the juice is sold to large beverage companies that produce cranberry juice blends. The company calculated the operating income and the corresponding division managers' bonuses when 460,000 pounds of cranberries are harvested and processed into juice under two different transfer pricing methods: (Click to view the operating income and bonus data.) (Click to view additional information.) Read the requirements.
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