FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Two possible transfer prices (for 4,000 units) are under consideration by two divisions: P35, the minimum transfer price and P40, the maximum transfer price. Corporate profits would be ______________ if P35 is selected as the transfer price rather than P40,  and the Computer Division purchases from the Computer Chip Division instead of from the external supplier

 a.40,000 larger

b.20,000 larger

c. the same

d. 20,000 smaller

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