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Performance Analysis Exercises The materials used by the Division A of Merlin Company are currently purchased from outside suppliers at 30 per unit. These same
Performance Analysis Exercises The materials used by the Division A of Merlin Company are currently purchased from outside suppliers at 30 per unit. These same materials are produced by F Merlin's Division B. The Division B can produce the materials needed by the Division A at a variable cost of 15 per unit. The division is currently producing 70.000 units and has capacity of 100.000 units. The two divisions have recently negotiated a transfer price of 22 per unit for 30.000 units. 1) By how much will each division's income increase as a result of this transfer
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