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Show Work! Rapid Industries has multiple.divisions. One division, Iron Products, makes a component that another division. Austin, is currently purchasing on the open market Iron
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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 525,000 components at a variable cost of $650 and a full cost of $9.50. tron Products has outside sales of 473,000 components at a price of $14.50 per unit. Austin cutrently purchases 60,000 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. 0. What will be the effect on Rapid Industries' operating profit af the transfer is made internally? Assume the 60,000 units Austin needs are either purchased 100% internally or 100% externally. b. What is the minimum transfer price? (Round your onswer to 2 decimal places.) b. What is the minimum transfer price? (Round your answer to 2 decimal places.) c. What is the maximum transfer price? (Round your answer to 2 decimal places.) Step by Step Solution
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