The Machining Division has a capacity of 2,000 units. Its sales and cost data are:...
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Accounting
The Machining Division has a capacity of units. Its sales and cost data are:
Selling price per unit
$
Variable manufacturing costs per unit
$
Variable administrative costs per unit
$
Total fixed manufacturing overhead
$
Total fixed administrative costs
$
If the assembly divisions is currently buying from an outside supplier at $ per unit, what will be the effect on overall company profits if internal sales of units from Machining to Assembly take place at the optimum transfer price?
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