Problem 1 MVS, Inc produces cleaning equipment, and operates severa that it sells to other companies for $25 per unit It is currenty Variable divisions. Division A produces a produet operating at ful capacity of 00.000 units per year manufacturing cost is $13 per unit, and variable marketing cost is 33 per unvit anew division, Division . to produce an innovative new tool that requres the use Division B can purchase a produet The company wishes to create division, As product (or one very simlar), Division B will produce 20,000 unts equivalent to Division A's from Company X for $18 per unit. However, MVs Division A supply Division B with the product If Division A supplies Division B, the transfer price would be $16 and there would be no marketing costs associated with the units. 1. From Division A's perspective the net benefit (cost) is? a. Net benefit of $360,000. b. Net cost of $180,000. C. Net cost of $120,000. d. Net cost of $60,000 From Division B's perspective the net benefit (cost) is? 2. a. Net benefit of $100,000. b. Net benefit of $40,000. C. Net cost of $360,000. d. Net cost of $60,000 3 From MVS, Inc.'s perspective the net benefit (cost) is? a. Net benefit of $180,000. b. Net benefit of $40,000. C. Net cost of $40,000. d. Net cost of $80,000