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Wiring used by the Appliance Division of Childs Manufacturing is currently purchased from outside suppliers at a cost of $12.50 per unit. However, the same

Wiring used by the Appliance Division of Childs Manufacturing is currently purchased from outside suppliers at a cost of $12.50 per unit. However, the same materials are available from the Electronic Division. The Electronic Division has unused capacity and can produce the materials needed by the Appliance Division at a variable cost of $10 per unit. Assume that a transfer price of $11 has been established and that 75,000 units of materials are transferred, with no reduction in the Electronic Division's current sales. a. How much would Childs Manufacturing's total operating income increase? $fill in the blank 1 b. How much would the Appliance Division's operating income increase? $fill in the blank 2 c. How much would the Electronic Division's operating income increase? $fill in the blank 3 d. If the negotiated price approach is used, what would be the range of acceptable transfer prices and why?

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