Question
Div A's unit cost data is below. Div B has been purchasing 1,000 units of the same part for $215.00 from another vendor and has
Div A's unit cost data is below. Div B has been purchasing 1,000 units of the same part for $215.00 from another vendor and has offered Div A $160.00 for 1,000 units. Div A's normal selling price is $210.00. Div A's capacity is 15,000 units and current sales to outside customers is 13,000 units. What is the income effect for the company if 1,000 units are transferred at $160.00 rather than purchased by Div B at $215.00? DM $60.00 DL 30.00 VOHD 15.00 FOHD 24.00 Variable selling 45.00 Fixed selling 9.00
Group of answer choices $23,000 $55,000 $65,000 $10,000
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