Materials used bv Ford Company.r in producing Division A's product are currently.r purchased from outside suppliers at a cost of 530 per unit. However, the same materials are available from Division B. Division B has unused capacity.r and can produce the materials needed by Division A at a variable cost of $20 per unit. a. If a transfer price of 525 per unit is established and 60,000 units of material are transferred with no reductions in Division E-'s current sales, how much would Ford Companv's total operating income increase? 5 600,000 J b. How much would the operating income of Division A increase? 5 300,000 J 0. HOW much would the operating income of Division B increase? 5-., cl. If the negotiated price approach is used, what would be the range of acceptable transfer prices? Round your answer to two decimal places. A portion of the divisional income statement for the year just ended is presented below in a condensed form. pa rtm ent F Net sales $93,800 Cost of goods sold 72,400 Gross prot $21,400 Operating expenses 28,900 Loss from operations $55500} The operating expenses of Department F include 516,000 for direct expenses. It is estimated that the discontinuance of Department F would not have affected the sales of the other departments nor have reduced the indirect expenses of the business. Assuming the accuracy.r of these estimates, determine the effect (increase or decrease and the amount] on the operating income of the business if Department F had been discontinued. A department store apportions payroll costs to the various departments on the basis of the number of payroll checks issued by each department. Accounting costs are apportioned on the basis of the number of reports generated for each department. The payroll costs for the year were $150,000, and the accounting costs for the year totaled $70,000. The number of payroll checks issued and the number of reports generated for each department are as follows: Number of Number Payroll Checks of Reports Department A 396 60 Department B 1,278 90 Department C 126 150 a. Determine the amount of payroll cost to be apportioned to each department. Payroll Cost Department A 33,000 Department B 106,000 X Department C +A 10,500 b. Determine the amount of accounting cost to be apportioned to each department. Accounting Cost Department A +A 14,000 Department B 21,000 Department C 35,000 V