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Business, 02.08.2019 20:30 haileestulley

Materials used by jefferson company in producing the 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 c at 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 jefferson's total income from operations increase?

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