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Crash Company makes internal transfers at 160% of full cost. The Soda Refining Division purchases 40,000 containers of carbonated water per day, on average, from

Crash Company makes internal transfers at 160% of full cost. The Soda Refining Division purchases 40,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $40 per container via an external shipper. To reduce costs, the company located an independent supplier in Illinois who is willing to sell 40,000 containers at $30 each, delivered to Crash Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 40,000 containers at a variable cost of $4.50 per container. What is the financial impact to the company by purchasing the container from the Illinois company?

Group of answer choices

$(608,000)

$220,000

$112,000

$(500,000)

Crash Company makes internal transfers at 180% of full cost. The Soda Refining Division purchases 50,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $50 per container via an external shipper. To reduce costs, the company located an independent supplier in Illinois who is willing to sell 50,000 containers at $35 each, delivered to Crash Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 50,000 containers at a variable cost of $6.50 per container. What is the financial impact to the company by purchasing the container from the Illinois company?

Group of answer choices

$425,000

$132,000

$(780,000)

$(844,000)

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