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The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $54 per unit. Division B is able to
The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $54 per unit. Division B is able to supply Division A with 22,200 units at a variable cost of $49 per unit. The two divisions have recently negotiated a transfer price of $50 per unit for the 22,200 units. By how much will each division's income and the company's total income change as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number. Change in income for Division A Change in income for Division B 88,800 22,200 Total change in income for Hibiscus Company 66,600
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