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I try to do number 1 but then get confused when trying to do number two. how should i do this? Apple Inc. is composed

image text in transcribedI try to do number 1 but then get confused when trying to do number two. how should i do this?
Apple Inc. is composed of two producing divisions-Division A and Division B. Division A's cost accounting records show that the cost of manufacturing its product is $150 per unit- $100 in variable costs and $50 in fixed costs. The product produced by Division A sells in the open market for $160, a price that barely covers Division A's cost of production plus its selling and administration costs, which run $8 per unit. Division A has capacity to produce 100,000 units of product and is currently producing 75,000 units. Division B makes a product that uses Division A's product and B would like to purchase 10,000 units of Division A's product for $150 per unit. With $40 of added variable costs, Division B sells its product for $225 a unit. Division A's manager is unhappy with Division B's offer of $150 a unit and is refusing to sell. Required: 1. Compute the profit of Division A, Division B and the company as a whole assuming A does not sell any products to B. To complete this part of the problem assume that A sells 75,000 products and B sells 10,000 products. Prepare the income statements using a contribution margin approach. 2. Recompute your answer assuming that A sells 10000 units at $150 each to B. Remember fixed costs do not change in total. 3. Based on the information presented what is the transfer price negotiation range for this problem as defined in the Chapter 10 notes and video covering this chapter

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