Question
The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $143 per engine. The Engine Division
The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $143 per engine. The Engine Division is currently operating at a capacity of 51718 engines per year and is currently selling 35496 engines annually. The variable cost of producing an engine is $97. The Snowmobile Division of the Taylor Corporation currently purchases 20623 engines from an external supplier at a cost of $144 per engine.
What is the overall benefit to the company if a transfer of 20623 engines from the Engine Division to the Snowmobile Division takes place?
Select one:
a. $223069
b. $969281
c. $766835
d. $0
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