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Category > Accounting Posted 13 Jun 2017 My Price 4.00

Wiring used by the Aircraft Division of Retina Manufacturing is currently purchased

Wiring used by the Aircraft Division of Retina Manufacturing is currently purchased from outside suppliers at a cost of $75 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 Aircraft Division at a variable cost of $66 per unit.

a. If a transfer price of $70 per unit is established and 25,000 units of materials are transferred, with no reduction in the Electronic Division’s current sales, how much would Retina Manufacturing’s total income from operations increase?

Answers

Alpha Geek
(8)
Status NEW Posted 13 Jun 2017 08:06 AM My Price 4.00

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file 1497343034-Answer.docx preview (134 words )
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