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B. Rapid Sdn Bhd (RSB) produces kitchen tools, and has multiple divisions. One of the division, Container Division, makes a component that another division,
B. Rapid Sdn Bhd (RSB) produces kitchen tools, and has multiple divisions. One of the division, Container Division, makes a component that another division, Cookware Division, is currently purchasing on the open market. Container Division currently has a capacity to produce 500,000 components at a variable cost of RM7.50 and a full cost of RM10.00. Container Division has outside sales of 460,000 components at a price of RM12.50 per unit. Cookware Division currently purchases 50,000 units from an outside supplier at a price of RM12.00 per unit. Assume that Cookware Division desires to use a single supplier for its component.
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