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The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $ 5 2 per unit. Division B is able
The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $ per unit. Division 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. Enter an increase as a positive number and a decrease as a negative number.
a By how much will each division's income increase as a result of this transfer?
Division $
Division B $
b What is the total increase in income for Hibiscus Company?
$
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