Chair manufacturer has two divisions

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Reference no: EM13864717

A chair manufacturer has two divisions: framing and upholstering. The framing costs are $200 per chair and the upholstering costs are $300 per chair. The company makes 10,000 chairs each year, which are sold for $600.

a. What is the profit of each division if the transfer price is $200?

b. What is the profit of each division if the transfer price is $250?

Reference no: EM13864717

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