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View Policies Current Attempt in Progress The Blossom Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept
View Policies Current Attempt in Progress The Blossom Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $960. Division A charges Division B the market price of $560 per unit of the part. Unit variable costs are $424 and $480 for Divisions A and B, respectively. The manager of Division B feels that Division A should transfer the part at a lower price than market because at market, Division B is unable to make a profit (a) Calculate Division B's contribution margin if transfers are made at the market price, and calculate the company's total contribution margin. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Division B's contribution margin $ Company's total contribution margin $ Save for Later Attempts: 0 of 1 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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