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Business, 31.08.2021 19:20 juniorvaldez60

The following information relates to Division ABC of Exacting Controls Inc.: Direct materials $6 Direct manufacturing labor $5 Variable factory overhead $2 Fixed factory overhead $3 Total $16 Division ABC has capacity of 200,000 units per year and is selling 195,000 units per year to outside buyers at $10 each. Division XYZ of Exacting Controls has offered to purchase 6,000 units from Division ABC for $6 per unit. What will be the change in operating income for Exacting Controls Inc. if Division ABC agrees to the offer

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