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! Required information [The following information applies to the questions displayed below.] Truball Incorporated which manufactures sports equipment, consists of several operating divisions. Division A

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! Required information [The following information applies to the questions displayed below.] Truball Incorporated which manufactures sports equipment, consists of several operating divisions. Division A has decided to go outside the company to buy materials because division B plans to increase its selling price for the same materials to $200. Information for division A and division B follows: units Outside price for materials Division A's annual purchases Division B's variable costs per unit Division B's fixed costs, per year Division B's capacity utilization $150 10,000 $140 $ 1,250,000 100% Required: 1-a. Assume that division B can sell 10,000 units outside the company for $215 per unit with variable marketing costs of $10. What will be the net benefit/cost to the firm as a whole if Division B sells outside? (Enter all the amounts as positive value.)

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