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Materials used by square yard products inc in producing division 3 s product are currently purchased from outside suppliers at a cost of 5 per unit however the same materials are available from division 6 division 6 has unused capacity and can produce the materials needed by division 3 at a variable cost of 3 per unit a transfer price of 3 20 per unit is established and 40 000 units of material are transferred with no reduction in division 6 s current sales how much would division 3 s income from operations increase 150 000 50 000 32 000 72 000 | |||||
0
In Income Cont.08
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