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help! Decision on transter pocing Materials used by the Instrument Division of Ziegler lic. are currently purchased from outside suppliers at a cost of s1a8
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Decision on transter pocing Materials used by the Instrument Division of Ziegler lic. are currently purchased from outside suppliers at a cost of s1a8 per unit. However, the same materials are available from the Components Division. The Components Division has untsed capecity and can produce the materials needed by the Instrument Division at a variable cost of $156 per unit a. If a transfer price of $171 per unit is established and 29,900 units of materials are transforred, with no reduction in the Camponents Division's current: sales. how much would Ziegler Inc's total operating income increase? b. How much would the Instrument Division's operating income increase? c. How much would the Components Division's operating income increase Step by Step Solution
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