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Wildhorse International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $90 per unit with the following

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Wildhorse International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $90 per unit with the following costs based on its capacity of 184,000 units: $29 25 Direct materials Direct labour Variable overhead Fixed overhead 10 5 Division Ais operating at 70% of normal capacity and Division B is purchasing 29,000 units of the same component from an outside supplier for $86 per unit Calculate the benefit, if any, to Division A in selling to Division B the 29,000 units at the outside supplier's price. Benefit

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