Division A has costs of R2000 per unit and transfer goods to Division B which...
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Accounting
Division A has costs of R2000 per unit and transfer goods to Division B which has additional costs of R800 per unit. Division B sells externally at R3000 per unit. The company has a policy of setting transfer prices at cost +20%. The managers of the 2 divisions receive a bonus which is based on exceeding a target ROI. Calculate the overall profit made by the company. Select one: O a. R200 O b. R1 000 OC. R2 200 O d. (R200) Oe. R400
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