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Question 25 lmia Manufacturing Inc. has two divisions, Division A and Division B. Divisian A produces car stercos that it sells to retail stores for
Question 25 lmia Manufacturing Inc. has two divisions, Division A and Division B. Divisian A produces car stercos that it sells to retail stores for a price of $33 per unit. Its full capacity is 244,000 units, but it currently sells 210,900 units. It incurs the following costs in its production: Direct materials 39 Direct labour Variable overhead 11 Fixed overhead 25 Division B is purchasing 15,600 units of the same stereo from an outside supplier for $84 per unit. is purchasing Your answer has been saved and sent for grading. See Gradebook for score detalls. Calculate the minimum transfer price Division A is willing to accept. Minimum transfer price 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. (Ifan answer is zero, please enter o. Do not leave any field blank.) Net income increase Attempts: 0 of 1 used SAVE FOR LATER
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