Business, 16.07.2019 18:20, imjustdumbsis

The consumer division is presently producing 14,400 units out of a total capacity of 17,280 units. materials used in producing the commercial division’s product are currently purchased from outside suppliers at a price of $150 per unit. the consumer division is able to produce the materials used by the commercial division. except for the possible transfer of materials between divisions, no changes are expected in sales and expenses. required: 1. would the market price of $150 per unit be an appropriate transfer price for garcon inc.? 2. if the commercial division purchases 2,880 units from the consumer division, rather than externally, at a negotiated transfer price of $115 per unit, how much would the operating income of each division and the total company operating income increase? the consumer division's operating income would increase by $ the commercial division's operating income would increase by $ garcon inc.'s total operating income would increase by $ 3. prepare condensed divisional income statemen

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The consumer division is presently producing 14,400 units out of a total capacity of 17,280 units. m...