h manufactures sports equipment, consists of several operating divisions. Division A has decided to go

for division A and division $B$ follows:

Required: $,$

Assume that division B cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole if

Division A purchases the materials outside the company.

$2-$a$.$ Assume that division B can save $$170,000$ in fixed costs if it does not manufacture the material for Division A$.$ Calculate the net

cost or benefit to the company as a whole for A to purchase outside the company.

$2-$b$.$ From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside

market?

$3-$a$.$ Assume the situation in Requirement $1.$ If the outside market value for the materials drops $$19,$ calculate the net cost or benefit to

the company as a whole for $A$ to purchase outside the company.

$3-$b$.$ From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside

market?

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Req $2A$

Assume that division B cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole

if Division A purchases the materials outside the company. $($Enter all the amounts as positive value.$)$