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The materials used by the North Division of Horton Company are currently purchased from outside suppliers at $36 per unit. These same materials are produced

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The materials used by the North Division of Horton Company are currently purchased from outside suppliers at $36 per unit. These same materials are produced by Horton's South Division. The South Division can produce the materials needed by the North Division at a variable cost of $16 per unit. The division is currently producing 98,000 units and has capacity of 140,000 units. The two divisions have recently negotlated a transfer price of $23 per unit for 42,000 units. By how much will each division's income increase as a result of this transfer? South Division North Division

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