# Based on Armstrong Manufacturings data in Exercise 14-20, assume that a transfer price of $190 has been

## Question:

a. How much would Armstrong Manufacturing’s total income from operations increase?

b. How much would the Engine Division’s income from operations increase?

c. How much would the Components Division’s income from operations increase?

d. If the negotiated price approach is used, what would be the range of acceptable transfer prices and why?

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