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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 is purchasing 5,600 units
Swan Company has two divisions, Hill and Paradise. Hill produces a unit that Paradise could use in its production. Paradise currently is purchasing 5,600 units from an outside supplier for $62. Hill is operating at less than full capacity and has variable costs of $36.80 per unit. The full cost to manufacture the unit is $49.40. Hill currently sells 450,600 units at a selling price of $67.60. What would be the impact on Swan Company's overall profits if the internal transfer is made
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