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Components. Division has unused capacty and can produce the materials needed by the Instrument Division...

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Accounting

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Components. Division has unused capacty and can produce the materials needed by the Instrument Division at a variable cost of $212 per unit. operabions increase? b. How much would the Instrument Divisions income from operabions increase? c. How moch would the Components Division's income trem operations increase? Components Division has unused capadty and can produce the materials needed by the Instrument Division at a variable cost of 3304 per unit. Assume that a transfer perice of 3348 has been establshed and that 23,400 units of materials are transferred, with no reduction in the Components Divisions current sales, a. How much would XPort Industries' total thcome from operations increase? b. How much aould the Instrument bivision's inome from operatians increase? c. How much would the Components Division's inceme frem ogerations increase? d. Asy transfer price will cause the total income of the company to , as long as the supplier division capacty is: toward maiking materials for products that are ultimately sold to the outside

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