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Truball Inc., which manufactures sports equipment, consists of several operating divisions. Division A has decided to go outside the company to buy materials since division
Truball Inc., which manufactures sports equipment, consists of several operating divisions. Division A has decided to go outside the company to buy materials since division B plans to increase its selling price for the same materials to $200. Information for division A. and division B follows: g divisions Division a base decided to go outside the a 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 $165 11, 500 units $155 $1, 280,000 100% Req 1 Req 2A Req 2B Req Req 3B Assume that division B cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole if Division A purchases the materials outside the company. (Enter all the amounts as positive value.) Req 1 Req 2A Req 2B Req Req 3B Assume that division B can save $225,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company. (Enter all the amounts as positive value.) Req 1 Req 2A Req 2B Req Req 3B Assume the situation in Requirement 1. If the outside market value for the materials drops $30, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. (Enter all the amounts as positive value.)
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