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The machining division of Carla Vista International has a capacity of 2,200 units. Its sales and cost data are: Selling price per unit $80
The machining division of Carla Vista International has a capacity of 2,200 units. Its sales and cost data are: Selling price per unit $80 Variable manufacturing costs per unit 30 Variable selling costs per unit 3 Total fixed manufacturing overhead 194,500 The machining division is currently selling 2,000 units to outside customers, and the assembly division of Carla Vista International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $3/unit. If Carla Vista's assembly division is currently buying from an outside supplier at $77 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? The company profits would increase by $
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