Question: Based on Goldman Motors data in Exercise 23-20, assume that a transfer price of $290 has been established and that 25,000 units of material are

Based on Goldman Motor’s data in Exercise 23-20, assume that a transfer price of $290 has been established and that 25,000 units of material are transferred, with no reduction in the Components division’s current sales.

(a) How much would Goldman Motors’ total income operation increase?

(b) How much would the Truck division’s income from operations increase?

(d) if the negotiated price approach in used, what would be the range of acceptable prices and why?

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