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The machining division is currently selling 1 , 8 0 0 units to outside customers, and the assembly division of Cullumber International wants to purchase
The machining division is currently selling units to outside customers, and the assembly division of Cullumber International wants to purchase units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $unit and not $unit If Cullumber's assembly division is currently buying from an outside supplier at $ per unit, what will be the effect on overall company profits if internal sales for units take place at the optimum transfer price?
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