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Alpha Division of Acme Enterprises currently purchases a component needed in producing its product from an outside supplier for $20 each. Alpha has learned that
Alpha Division of Acme Enterprises currently purchases a component needed in producing its product from an outside supplier for $20 each. Alpha has learned that Acme recently acquired Morgan Company, a competing supplier for this component. Morgan currently is operating at full capacity. Morgan currently sells the components it produces for $24 at a variable cost of $15. What would be the minimum and maximum transfer prices?
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