answer following questions ;

a) what isbthe lowest price beta would be willing to accept

b) if bsta was operating at full capacity what is the lowest transfer that beta is willing to accept

Pharoah 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 217,600 units: $ 23 Direct materials Direct labour 18 Variable overhead 4 Fixed overhead 11 Beta is operating at 79% of normal capacity and gamma is purchasing 17,000 units of the same component from an outside supplier for $ 69 per unit (a) Your answer is correct. Calculate the benefit, if any, to beta in selling to gamma 17,000 units at the outside supplier's price, Benefit $ 24 per unit