Question: need help on this please 4 BACK NE Crane Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle
4 BACK NE Crane Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production division. It has been decided that the Engine Division will sell 19000 units to the Production Division at 1050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2250 and unit variable costs and fixed costs of $1050 and $1200, respectively. The Production Division is currently paying $2100 per unit to an outside supplier. $110 per unit can be saved on internal sales from reduced selling expenses. What is the increase/decrease in overall company profits of this transfer takes place? Decrease $760000 Increase $1950667 Increase $19950000 Decrease $2850000
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