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Swan Company has two divisions, Hill and Paradise Hill produces a unit that Paradise could use in its production. Paradise currently purchasing 4.500 units
Swan Company has two divisions, Hill and Paradise Hill produces a unit that Paradise could use in its production. Paradise currently purchasing 4.500 units from an outside supplier for $5 operating at less than full capacity and has variable costs of $25 80 per unit. The full cost to manufacture the unit is $38.40 H currently sells 449,500 units at a seting price of $56.60 How much will Paradise save by not purchasing from outside if a transfer price of $37 is agreed upon? Multiple Choice $56.5001 $6.500 $27500 100,000
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