I don't understand why the transfer of cost is multiplied with 14000units but the v.cost is multiplied with 7000 units in this question
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PMBPP question 264 - residual income
8y ago#1You must ask in the Ask the Tutor Forum if you want me to answer - this forum is for students to help each other.
It is because the question says that division B uses 2 units of the component from Division A for every item that they make and sell. They sell 7,000 units and so they need 14,000 components.
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