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Rapid Industries has multiple divisions. One division, Iron Products, makes a component that another division, Austin, is currently purchasing on the open market. Iron Products

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Rapid Industries has multiple divisions. One division, Iron Products, makes a component that another division, Austin, is currently purchasing on the open market. Iron Products currently has a capacity to produce 505,000 components at a variable cost of $6.00 and a full cost of $9.00. Iron Products has outside sales of 471,000 components at a price of $14.50 per unit. Austin currently purchases 40,000 units from an outside supplier at a price of $11.50 per unit. Assume that Austin desires to use a single supplier for its component. a. What will be the nect on Rapid Industries' operating profit if the transfer is made internally ne the 40,000 units Austin needs are either purchased 100% internally or 100% externally. Increase in Profits

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