Wiring used by the Appliance Division of Kaufman Manufacturing is currently purchased from outside suppliers at a
Question:
a. If a transfer price of $23 per unit is established and 150,000 units of materials are transferred, with no reduction in the Electronic Division's current sales, how much would Kaufman Manufacturing's total operating income increase?
b. How much would the Appliance Division's operating income increase?
c. How much would the Electronic Division's operating income increase?
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