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What effect will this change have on the overall profits

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Question - Division X and Division Y are segments of the Goddard Company. Currently, Division X is selling 2,000 of its units to Division Y at a transfer price of $10. For the next time period, the managers of the 2 divisions have again agreed to transfer 2,000 units from X to Y, but at a transfer price of $8 rather than $10. If everything else remains the same as last period, what effect will this change have on the overall profits of the Goddard Company?

Reference no: EM132542984

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