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Question 3 Division Blas just developed a new product Division 5 can supply an intermediate product to Drusion Bata transfer price equal to the absorption
Question 3 Division Blas just developed a new product Division 5 can supply an intermediate product to Drusion Bata transfer price equal to the absorption cost of $10 per unit that includes a 5 fixed cost per unit and a 55 proceving costs of 59 and that the price of the final product would be S16 pe Fach makes decisions that maximam profite (Arume that there no other source for the intermediate prod Which is true Die will not buy the termediate product from Dwon Don B will love in contribution margin each unit of the sew product Demon will not buy the mtendate product from Dumon pee Demon will fore in contribution marpan on each of the new product. Division B will try the online product from Division Suince Division B will rom $3 in comitation marrin en nacht of the product Division will buy the intermediate product from Division Sumer Division will earn 1 in contribution marin on each unit of the product . Which of the following statements is true? Assuming all else holds constant, if the average inventories increase, then the turnover will increase Assuming all else holds constant, if the average inventories increase, then the turnover will decrease. Assuming all else holds constant, if the average inventories increase, then the margin will increase Assuming all else holds constant, if the average inventories increase, then the margin will decrease
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