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The machining division of Cullumber International has a capacity of 2,000 units. Its sales and...

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Accounting

The machining division of Cullumber International has a capacity of 2,000 units. Its sales and cost data are:
The machining division is currently selling 1,800 units to outside customers, and the assembly division of Cullumber International
wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred
to assembly will be $ 0 unit, and not $3/unit. If Cullumber's assembly division is currently buying from an outsider $75 per
unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price?
The company profits would
by $
image

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