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To help understand the factors impacting a sales budget, you are to visit three businesses with the same ownership or franchise membership. Record the selling prices of two identical products at each location, such as regular and premium gas sold at Chevron stations. You are likely to find a difference in prices for at least one of the three locations you visit.
Required
Identify at least three external factors that must be considered when setting the sales budget. (Note: There is a difference between internal and external factors that impact the sales budget.)
What factors might explain any differences identified in the prices of the businesses you visited?
Evaluate the effect on Rapid Industries' operating profit if the transfer is made internally? Consider the 50,000 units Austin requires are either purchased 100% internally or 100% externally.
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