Business, 23.11.2019 01:31 attp203

Materials used by best bread company in producing division a's product are currently purchased from outside suppliers at a cost of $30 per unit. however, the same materials are available from division b. division b has unused capacity and can produce the materials needed by division a at a variable cost of $20 per unit.
a. if a transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in division b's current sales, how much would best bread company's total income from operations increase? $
b. assuming a transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in division b's current sales, how much would the income from operations of division a increase? $
c. assuming a transfer price of $25 per unit is established and 60,000 units of material are transferred, with no reductions in division b's current sales, how much would the income from operations of division b increase? $
d. if the negotiated price approach is used, what would be the range of acceptable transfer prices? $ to $

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