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Help Save & Exit Submit Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its production. Silver

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Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its production. Silver currently is purchasing 50,700 units from an outside supplier for $32.00. Gold is operating at less than full capacity and has variable costs of $20.50 per unit. The full cost to manufacture the unit is $27.00. Gold currently sells 450,700 units at a selling price of $34.00. If an internal transfer is made, variable shipping and administrative costs of $1.00 per unit could be avoided. How much will Silver save by not purchasing from outside if a transfer price of $29.50 is agreed upon?
Multiple Choice
$126,750
$226,750
$251,750
$176,750
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