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Holiday Corporation has two divisions, Quail and Marlin. Quall produces a widget that Marlin could use in its production. Quall's variable costs are $4.50 per
Holiday Corporation has two divisions, Quail and Marlin. Quall produces a widget that Marlin could use in its production. Quall's variable costs are $4.50 per widget while the full cost is $7.50. Widgets sell on the open market for $13.00 each. If Quall has excess capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 125,000 units on the open market? Multiple Choice $0 $937,500 $1,062,500 $1,625.000 Holiday Corporation has two divisions, Quail and Marlin. Quall produces a widget that Marlin could use in its production. Quall's variable costs are $4.50 per widget while the full cost is $7.50. Widgets sell on the open market for $13.00 each. If Quall has excess capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 125,000 units on the open market? Multiple Choice $0 $937,500 $1,062,500 $1,625.000
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