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Division A of Sebastian Enterprises manufactures a product called XYZ. Current data for Division A are as follows: Capacity 61924 Current production & sales 48755

Division A of Sebastian Enterprises manufactures a product called XYZ. Current data for Division A are as follows:

Capacity

61924

Current production & sales

48755

Per unit data

Selling price

$92.14

Variable costs - production

33.74

Variable costs marketing relating to external sales

16.52

Division B of Sebastian Enterprises currently buys 21938 units of XYZ yearly from an outside supplier at a price of $57.65. Division B would like to buy the 21938 units of XYZ it needs annually from Division A. What is the incremental benefit (cost) to Sebastian Enterprises if an internal transfer takes place?

Select one:

a. $524538

b. $157292

c. $1264726

d. $-205124

PLEASE ANSWER ASAP

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