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Question 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B. Division A produces car stereos that it sells to retail stores for

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Question 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B. Division A produces car stereos that it sells to retail stores for a price of $95 per unit. Its full capacity is 260,000 units, but it currently sells 223,900 units. It incurs the following costs in its production: Direct materials $40 Direct labour Variable overhead 12 Fixed overhead Division B is purchasing 17,900 units of the same stereo from an outside supplier for $86 per unit. Z Your answer has been saved and sent for grading. See Gradebook for score details. Calculate the minimum transfer price Division A is willing to accept Minimum transfer price 78 LINK TO TEXT Attempts: 1 of 1 used (b) Determine the effect on the net income of Division A at the price determined in part a. (If an answer is zero, please enter 0. Do not leave any field blank.) Net income increase LINK TO TEXT

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