The materials used by the Multinomah Division of Isbister Company are currently purchased from outside...
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The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $50 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $27 per unit. The division is currently producing 119,000 units and has capacity of 170,000 units. The two divisions have recently negotiated a transfer price of $41 per unit for 51,000 units. By how much will each division's income increase as a result of this transfer? Pembroke Division $ Multinomah Division $
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The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $50 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $27 per unit. The division is currently producing 119,000 units and has capacity of 170,000 units. The two divisions have recently negotiated a transfer price of $41 per unit for 51,000 units. By how much will each division's income increase as a result of this transfer? Pembroke Division $ Multinomah Division $ 