Airo Corporation has two divisions. The mining division makes toldine, which is then transferred to...
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Airo Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and is sold to customers at a price of $ per unit. The mining division is currently required by Airo to transfer its total yearly output of units of toldine to the metals division at of full manufacturing cost. Unlimited quantities of toldine can be purchased and sold on the outside market at $ per unit. The following table gives the manufacturing cost per unit in the mining and metals divisions for the year: Click to view the data. Required Requirement Calculate the operating incomes for the mining and metals divisions for the units of toldine transferred under the following transferpricing methods: a market price and b of full manufacturing cost. Begin with calculating the operating income for the mining division under each method by entering the appropriate amounts, and then complete the table for the metal division. tableMining divisionDivision revenueCost:Division variable costDivision fixed costTotal division costDivision operating income 
Airo Corporation has two divisions. The mining division makes toldine, which is then transferred to the metals division. The toldine is further processed by the metals division and is sold to customers at a price of $ per unit. The mining division is currently required by Airo to transfer its total yearly output of units of toldine to the metals division at of full manufacturing cost. Unlimited quantities of toldine can be purchased and sold on the outside market at $ per unit.
The following table gives the manufacturing cost per unit in the mining and metals divisions for the year:
Click to view the data.
Required
Requirement Calculate the operating incomes for the mining and metals divisions for the units of toldine transferred under the following transferpricing methods: a market price and b of full manufacturing cost.
Begin with calculating the operating income for the mining division under each method by entering the appropriate amounts, and then complete the table for the metal division.
tableMining divisionDivision revenueCost:Division variable costDivision fixed costTotal division costDivision operating income
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