Materials used by jefferson company in producing division c's product are currently purchased from outside suppliers at a cost of $10.00 per unit. however, the same materials are available with division a. division a has unused capacity and can produce the materials needed by division c at a variable cost of $8.50 per unit. a transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in division a's current sales. how much will division a's income from operations increase? a. $50,000 b. $25,000 c. $0 d. $75,000

None of the above.

Total Income from operation increase.  12,500.00

Explanation:

$          10.00Per unit

$            9.50Per unit

$            0.50Per unit

25.000Units

Total Income from operation increases      12,500.00

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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