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 515,000 components at a variable cost of $6.00 and a full cost of $9.50. Iron Products has outside sales of 482,000 components at a price of $14.00 per unit. Austin currently purchases 45,000 units from an outside supplier at a price of $11.00 per unit. Assume that Austin desires to use a single supplier for its component.

a.	What will be the effect on Rapid Industries