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TEB, Inc., which manufactures video games, consists of two divisions, each operating as a profit center. Division A makes a component that is needed by

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TEB, Inc., which manufactures video games, consists of two divisions, each operating as a profit center. Division A makes a component that is needed by Division B; however, if the price from Division A is too high, Division B has indicated it would purchase the component from an outside supplien Additional information related to the divisions is: Mssume Division A has an offer from a foreign buyer to purchase 10,000 units at $145 per unit. Assume the company management (Vice-President above the two divisions) wants Division A to supply/transfer 10.000 units to Division B. 52. If Division A sells 10,000 units to the foreign buyer and Division B buys 10,000 from outside, the effect on total company profits will be: Lower the operating profit $50,000 Lower the operating profit $200,000 Increase the operating profit $50,000 Increase the operating profit $250,000

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