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Business, 29.07.2019 20:20 astigall4272

Timekeeper corporation has two divisions, distribution and manufacturing. the company's primary product is high-end watches. each division's costs are provided below: manufacturing: variable costs per unit $1.36 fixed costs per unit $5.77 distribution: variable costs per unit $1.30 fixed costs per unit $0.50 the distribution division has been operating at a capacity of 4,009,000 units a week and usually purchases 2,004,500 units from the manufacturing division and 2,004,500 units from other suppliers at $13.00 per unit. assume 110,000 units are transferred from the manufacturing division to the distribution division for a transfer price of $8.00 per unit. the distribution division sells the 110,000 units at a price of $18 each to customers. what is the operating income of both divisions together

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