Avery Company has two dlvisions, Polk and Bishop. Polk produces an item that Bishop could...
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Avery Company has two dlvisions, Polk and Bishop. Polk produces an item that Bishop could use in its production, Bisthop curtently is purchasing 24,000 units from an outside supplier for $16.00 per unit. Polk is currently operating at less than its full capacity of 600,000 price of $20 por unit. Required: a. What will be the effect on Avery Company's operating profit if the transfer is made internally? b. What is the minimum transfer price from Polk's perspective? c. What is the maximum transfor price from Blshop's perspective
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