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The materials used by bocus Company's Division & are currently purchased from an outside supplier at $54 per unit. Dison B is able to
The materials used by bocus Company's Division & are currently purchased from an outside supplier at $54 per unit. Dison B is able to supply Division Awith 22,500 units at a variable cost of $50 per unit. The two divisions have recently negotiated a tramfer price of $51 per unit for the 22,600 units. Enter an increase as a positive number and a decrease as a negative member. a. By how much will each divisions income increase as a result of this transfer? Division A Division B b. What is the total increase in income for biscus Company?
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