Use the data from BE9-7. If ITA's assembly division is currently buying from an outside supplier at

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Use the data from BE9-7. If ITA's assembly division is currently buying from an outside supplier at $75 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price?
Selling price per unit......................................$80
Variable manufacturing costs per unit...................25
Variable selling costs per unit..............................5
Total fixed manufacturing overhead..............200,000
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Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118856994

4th Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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