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Business, 05.08.2019 23:30 ljm64

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?

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