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Please finish this by showing your work. Highlight answers. Do NOT finish answers with pen or pencil. Brief Exercise 9.8 The machining division of ITA

Please finish this by showing your work. Highlight answers. Do NOT finish answers with pen or pencil.

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Brief Exercise 9.8 The machining division of ITA International has a capacity of 2,150 units. Its sales and cost data are: Selling price per unit $75 Variable manufacturing costs per unit 20 Variable selling costs per unit 7 Total xed manufacturing overhead 187,100 The machining division is currently selling 1,950 units to outside customers, and the assembly division of [TA International wants to purchase 400 unils from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $7/unit. If the assembly division is currently buying from an outside supplier at $71 per unit, what will be the effect on overall company prots if internal sales for 400 units take place at the optimum transfer price? V The company prots would by $

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