Question: Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4.60 per

Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in its production. Quail's variable costs are $4.60 per widget while the full cost is $7.60. Widgets sell on the open market for $13.20 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 130,000 units on the open market? 1 0 $1,118,000 0 $1,716,000 0 $988,000 0
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