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The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $55 per unit. Division B is able to supply
The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $55 per unit. Division B is able to supply Division A with 22,300 units at a variable cost of $47 per unit. The two divisions have recently negotiated a transfer price of $49 per unit for the 22,300 units. a. By how much will each division's income increase as a result of this transfer? Division A Division B b. What is the total increase in income for Hibiscus Company
The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at sss perunt, Division is able to supply Divison who is variable cost of $47 per unit. The two divisions have recently negotiated a transfer price of 549 peront for the 2,300 units a. By how much will each division's income increase as a result of this transfer Division A Division B b. What is the total increase in income for Hibiscus Company Step by Step Solution
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