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Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs
Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 210,500 units: Direct materials $24.00 Direct labour 14.00 Variable overhead 4.00 Fixed overhead 11.00 Beta is operating at 75% of normal capacity and gamma is purchasing 14,500 units of the same component from an outside supplier for $69 per unit. (a) Calculate the benefit, if any, to beta in selling to gamma 14.500 units at the outside supplier's price. $ Benefit per unit
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