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Apha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $ 7 5 per unit, with the following

Apha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 200,000 units: Beta is operatingat 75% of normal capacity and gamma is purchasing 15,000 units of the same component from an outside supplier for $70 per unit. (e) Explain why the level of capacity in the beta division affects the transfer price.

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