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What is the total increase in income for edwards

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Question - Edwards Company's Division X materials are currently purchased from an outside supplier at $60 per unit. Division W is able to supply Division X with 20,000 units at a variable cost of $46 per unit. The two divisions have recently negotiated a transfer price of $50 per unit for the 20,000 units.

(A) By how much will each division's income increase as a result of this transfer?

(B) What is the total increase in income for Edwards?

Reference no: EM133071370

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