The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $55
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Question:
The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $55 per unit. Division B is able to supply Division A with 22,300 units at a variable cost of $41 per unit. The two divisions have recently negotiated a transfer price of $48 per unit for the 17,500 units. By how much will each division's income and the company's total income change as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number.
Change in income for Division A | $ |
Change in income for Division B | $ |
Total change in income for Hibiscus Company ? |
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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