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Swan Company has two divisions, Hill and Paradise. Hill produces a unit that Paradise could use in its production. Paradise currently is purchasing 6,000 units

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Swan Company has two divisions, Hill and Paradise. Hill produces a unit that Paradise could use in its production. Paradise currently is purchasing 6,000 units from an outside supplier for $66. Hill is operating at less than full capacity and has variable costs of $40.80 per unit. The full cost to manufacture the unit is $53.40. Hill currently sells 451,000 units at a selling price of $7160. How much will Paradise save by not purchasing from outside if a transfer price of $52 is agreed upon Multiple Choice $84.000 $57,000 $8.000 more cost 529.000

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