Based on XPort Industries' data in Exercise 23-20 assume that a transfer price of $190 has been

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Based on XPort Industries' data in Exercise 23-20 assume that a transfer price of $190 has been established and that 60,000 units of materials are transferred, with no reduction in the Components Division's current sales.

a. How much would XPort Industries' total income from operations increase?

b. How much would the Instrument 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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Financial and Managerial Accounting

ISBN: 978-1285866307

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jun 16, 2016 01:48 AM

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Based on XPort Industries' data in Exercise 23-20 assume that a transfer price of $190 has been

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a This amount is the same amount by which XPort Industries income from operations increased in Ex 23...View the full answer

Financial and Managerial Accounting

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