The Interior Division at Kate Spade produces parts that Exterior Division could use. The variable cost of the parts is $20.50 per unit and the total manufacturing cost is $27 per unit. The purchasing price paid by Exterior to an outside supplier is $32 and Exterior is purchasing 50,700 units. The selling price charged by Interior to outside customers is $34. Suppose the transfer price is $29.50 per unit, what is the total amount Exterior could save by Internal transfer? Multiple Choice $126,750 $226,750 $176.750 $251750