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The materials used by Hibiscus Company Division A are currently purchased from outside supplier at $ 5 5 per unit. Division B is able to
The materials used by Hibiscus Company Division A are currently purchased from outside supplier at $ per unit. Division B is able to supply Division A with units at a variable cost of $ per unit. The two divisions have recently negotiated a transfer price of $ per unit for the units.
a By how much will each division's income increase as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number.
Division A s
Division B s
b What is the total increase in income for Hibiscus Company?
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