Internal or External Acquisitions: No Opportunity Costs The Van Division of Travel Vans Corporation has offered to purchase 180,000 wheels from the Wheel Division for S76 per wheel. At a normal volume of 500,000 wheels per year, production costs per wheel for the Wheel Division are as follows: ..$26 Direct labor.. 20 12 30 $88 Total.... The Wheel Division has been selling 500,000 wheels per year to outside buyers at $106 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $100 per wheel Required a. Should the Wheel Division manager accept the offer? Show computations. b. From the standpoint of the company, will the internal sale be beneficial