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The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $54 perunt. Division B ale to supply Division A
The materials used by Hibiscus Company's Division A are currently purchased from an outside supplier at $54 perunt. Division B ale to supply Division A with 19,600 unts at a variable cost of $S2 per unit The two divisions have recently negotiated a transfer price of $50 per unit for the 19,000 units Enter an increase as a positive number and a decrease as a negative number Dy tow much wil each divisione income increase as a result of this transter? Division 980,000 Division 1,019,20 b. What is the total increase in income for Hbiscus Company 39,200
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