4. Africa, Inc. has two divisions,one located in North and theother located in South. Northsells a specialized circuit toSouth and just recently raisedthe circuit's transfer price. Thisprice hike had no effect oneither the volume of circuitstransferred or on South'sdecision of whether to acquirethe circuit from either North orfrom an external supplier. On thebasis of this information, whichof the following correctly showsthe effect of the transfer priceon the South divisional profit andOverall company profit?O (South, Overall) = (increase, increase)(South, Overall) = (decrease, nochange)O (South, Overall) = (decrease, increase)O (South, Overall) = (increase, no change

Requirement : In the given question it is asked the effect on profit of the south division and…

Answered: one located in North and the other…

one located in North and the other located in South. North sells a specialized circuit to South and just recently raised the circuit's transfer price. This C.C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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