Question
Hide or show questions Progress:20/28 items The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $54 per unit.
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The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $54 per unit. Division B is able to supply Division A with 20,200 units at a variable cost of $48 per unit. The two divisions have recently negotiated a transfer price of $50 per unit for the 20,200 units. By how much will each division's income and the company's total income change as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number.
Change in income for Division A $fill in the blank 1 Change in income for Division B $fill in the blank 2 Total change in income for Hibiscus Company $fill in the blank 3
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Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo
5th Global Edition
1292304154, 978-1292304151
