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 $38 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	$ 13
Direct labor	10
Variable overhead	6
Fixed overhead	15
Total	$ 44

The Wheel Division has been selling 500,000 wheels per year to outside buyers at $53 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $50 per wheel.

(a) Calculate the net benefit (or cost) to the Wheel Division of accepting the offer from the Van Division. $Answer per wheel

(b) Calculate the net benefit (or cost) to Motocar Corp. if the Wheel Division accepts the offer from the Van Division. $Answer per wheel