Federar, SA, a Swiss transportation equipment manufacturer, is heavily decentralized. Each division head has full authority on all decisions regarding sales to internal or external customers. The Nidwalden division has always acquired a certain equipment component from the Schaffhausen division. The Schaffhausen division recently acquired specialized equipment that is used primarily to make this component. The Geneva division has informed the Lucerne division that their fixed costs have increased by CHF 25 per unit because of the depreciation charges on the new equipment, so the unit price will be increased to CHF 345. However, the Nidwalden division's management has now decided to purchase the component from outside suppliers at a price of CHF 320. The Schaffhausen division has supplied the following production cost data for this component: (Click the icon to view the data.) Read the requirements Requirement 1. Suppose there are no alternative uses of the Schaffhausen facilities and that fixed costs will continue if Schaffhausen no longer produces the component for Nidwalden. Will the company as a whole benefit if the Nidwalden division buys from the outside suppliers for CHF 320 per unit? Show computations to support your answer Begin by completing the table below to calculate the net cost (benefit) to the company as a whole. (Enter a net benefit using parentheses or a minus Purchase costs paid to outside suppliers Less: Savings in variable costs Net cost (benefit) to company as a whole Data Table 4,000 units Annual production of component (all for sale to Nidwalden division) Schaffhausen's variable costs per unit Schaffhausen's fixed costs per unit CHF 310 CHF 25 PrintDone