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The machining division of Sunland International has a capacity of 2,250 units. Its sales and cost data are: The machining division is currently selling 2,050
The machining division of Sunland International has a capacity of 2,250 units. Its sales and cost data are: The machining division is currently selling 2,050 units to outside customers, and the assembly division of Sunland 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 $6 /unit. If Sunland's assembly division is currently buying from an outside supplier at $80 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 by $
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