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Holiday Corp has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production. Quail's variable costs are $5.20 per widget while the full cost is $8.20. Widgets sell on the open market for $14.40 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 160,000 units on the open market? Multiple Choice 50 $1,472.000 $2.304.000 $1,312.000

Holiday Corp has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production. Quail's variable costs are $5.20 per widget while the full cost is $8.20. Widgets sell on the open market for $14.40 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 160,000 units on the open market? Multiple Choice 50 $1,472.000 $2.304.000 $1,312.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Holiday Corp has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production. Quail's variable costs are $5.20 per widget while the full cost is $8.20 Widgets sell on the open market for $14.40 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 160,000 units on the open market? Multiple Choice 50 $1,472.000 $2,304,000 $1,312.000
Transcribed Image Text:Holiday Corp has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production. Quail's variable costs are $5.20 per widget while the full cost is $8.20 Widgets sell on the open market for $14.40 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 160,000 units on the open market? Multiple Choice 50 $1,472.000 $2,304,000 $1,312.000
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