Internal or External Acquisitions: No Opportunity Costs The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $43 per wheel. At a normal volume of 500,000 wheels per year, production costs per wheel for the Wheel Division are as follows: Direct materials $14 Direct labor 10 Variable overhead 7 Fixed overhead 17 Total $48 The Wheel Division has been selling 500,000 wheels per year to outside buyers at $58 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $56 perwheel. (a) Calculate the net benefit (or cost) to the Wheel Division of accepting the offer from the Van Division. 5 x per wheel (b) Calculate the net benefit (or cost to Motocar Corp. if the Wheel Division accepts the offer from the Van Division. 10 X per wheel