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Help Save & Exit Submit Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its production. Silver
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Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its production. Silver currently is purchasing units from an outside supplier for $ Gold is operating at less than full capacity and has variable costs of $ per unit. The full cost to manufacture the unit is $ Gold currently sells units at a selling price of $ If an internal transfer is made, variable shipping and administrative costs of $ per unit could be avoided. How much will Silver save by not purchasing from outside if a transfer price of $ is agreed upon?
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