Question 26 Sabby Inc. has two divisions. The machining division has a capacity of 21,200 units and its selling price per unit is $42. It has variable manufacturing costs per unit of $16, variable selling costs of $7 per unit, and fixed manufacturing overhead of $74,300. It currently produces and sells 20,200 units to outside customers. The assembly division would like to buy 500 units from machining. If the machining division does sell the units to the assembly division, it will not incur any variable selling costs. The assembly division is currently buying these units from an outside company at $35 per unit. Assuming machining accepts the minimum transfer price, what is the effect on the overall net income of the company? Overall in net income $ LINK TO TEXT If the units being ordered by assembly are of a higher quality, resulting in an increase in variable costs by another $16 per unit, what is the minimum transfer price that machining will accept? Minimum transfer price