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Avery Company has two divisions, Polk and Bishop. Polk produces an ltem that Bishop could use in its production, Bishop currenthy is purchasing 25,000 units

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Avery Company has two divisions, Polk and Bishop. Polk produces an ltem that Bishop could use in its production, Bishop currenthy is purchasing 25,000 units from an outside suppller for $24.00 per unit. Polk is currently operating at less than its full capicity of 600,000 units and has variable costs of $12.00 per unit. The full cost to manufacture the unit is $18.00. Polk curtently sells 450,600 units at a selling price of $25.50 per unit. Required: o. What will be the effect on Avery Company's operating profit if the transfer is made internally? b. What is the minimum transfer price from Polk's perspective? c. What is the maximum transfer price from Bishop's perspective? Complete this question by entering your answers in the tabs below. What will be the effect on Avery Company's operating profit if the transfer is made internally

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