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13. Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4
13. Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4 per widget while the full cost is $7. Widgets sell on the open market for $12 each. If Quail is operating at capacity, what would be the cost savings to Holiday Corp. if the transfer were made and Marlin currently is purchasing 100,000 units on the open market? Select one: a. $0 b. $1,200,000 c. $700,000 d. $800,000
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