Question: Please provide solution for the following question. Thank you. Q uesti o n 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B.

Please provide solution for the following question. Thank you.


Q uesti o n 25 Elmira Manufacturing Inc. has two divisions, Division A and Division B. Division A produces car stereos that it sells to retail stores for a price of $94 per unit. Its full capacity is 257,500 units, but it currently sells 219,300 units. It incurs the following costs in its production: Direct materials $40 Direct labour 27 Variable overhead 11 Fixed overhead 4 Division B is purchasing 15,000 units of the same stereo from an outside supplier for $84 per unit. Calculate the minimum transfer price Division A is willing to accept. Minimum transfer price $ LINK TO TEXT Determine the effect on the net income of Division A at the price determined in part a. (If an answer is zero, please enter 0. Do not leave any field blank.) Net income increase $ LINK TO TEXT Determine the effect on the net income of Division B at the price determined in part a. Net income increase $
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