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Case 13-52 Interdivisional Transfers; Pricing the Final Product (LO 13-6, Continental Industries is a diversified corporation with separate operating divisions. Each division's performance is evaluated on the basis of profit and return on investment. The Air Comfort Division manufactures and sells air-conditioner units. The coming year's budgeted income statement, which follows, is based upon a sales volume of 16,000 units AIR COMFORT DIVISION Budgeted Income Statement (In thousands) Total Per Unit Sales revenue $6,576 S 411 Manufacturing costs: Compressor Other direct material Direct labor Variable overhead Fixed overhead $1.264 $ 79 432 27 368 23 464 29 384 24 Total manufacturing costs $2912 $ 182 Gross margin $3,664 $229 Operating expenses 1 of 10 Next > ere to search