Question: Please write out correct answer and whether its A, B, C or D. Thank you! Materials used by Chevy Company in producing Division C's product

Please write out correct answer and whether its A, B, C or D. Thank you!

Materials used by Chevy Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division Cat a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in Division A's current sales. How much will Division C's income from operations increase? $75,000 $12,500 $0 $50,000 Previous Next hp

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