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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

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 490,000 components at a variable cost of $5.50 and a full cost of $9.00. Iron Products has outside sales of 453,000 components at a price of $12.50 per unit. Austin currently purchases 45,000 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 effect on Rapid Industries

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