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The Kelly - Elias Corporation, manufacturer of tractors and other heawy farm equipment, is organized along The company aiready completed an analysis to decentralized product lines, with each manufacturing determine if it was in its best interest to have division operating as a separate profit center. Each division division C purchase 1,700 units from an external supplier for $110 per unit, assuming that there are manager has been delegated full authority on all decisions no allernative uses for internal facilities of division involving the sale of that division's output both to outsiders A. and to other divisions of Kelly - Elias. (1.) (Click the icon to view the information on the divisions.) IIA (Click the icon to view the results of the analysis.) Now, assume that division A can sel the 1,700 units to other customers at $135 per unit, with variable marketing costs of $5 per unit. Begin by calculating the contribution margin from selling units to other customers. Then calculate the net beneth (cost) to the company a a whole. (Enter a net cost using parentheses or a minus sign.) Less: Variable marketing costs Contribution margin from selling units to othor customers Data table Purchase costs paid to external suppliers Less: Savings in variable costs Net cost to the compary as a result of purchasing from extemal suppliers \begin{tabular}{rr} 5 & 187,000 \\ 178,500 \\ \hline 5 & 8,500 \\ \hline \end{tabular} 7 Print Done Contribution margin from selling units to other customers 10 olve this Etext pages Get more help . Clear all Check More info Division C has in the past always purchased its requirement of a particular tractor-engine component from division A. However, when informed that division A is increasing its selling price to $130, division C's manager decides to purchase the engine component from external suppliers. Division C can purchase the component for $110 per unit in the open market. Division A insists that, because of the recent installation of some highly specialized equipment and the resulting high depreciation charges, it will not be able to earn an adequate return on its investment unless it raises its price. Division A's manager appeals to top management of Kelly - Elias for support in the dispute with division C and supplies the following operating data: C's annual purchases of the tractor-engine component 1,700 units A's variable cost per unit of the tractor-engine component $105 A's fixed cost per unit of the tractor-engine component $15 The Kelly - Elias Corporation, manufacturer of tractors and other heawy farm equipment, is organized along The company aiready completed an analysis to decentralized product lines, with each manufacturing determine if it was in its best interest to have division operating as a separate profit center. Each division division C purchase 1,700 units from an external supplier for $110 per unit, assuming that there are manager has been delegated full authority on all decisions no allernative uses for internal facilities of division involving the sale of that division's output both to outsiders A. and to other divisions of Kelly - Elias. (1.) (Click the icon to view the information on the divisions.) IIA (Click the icon to view the results of the analysis.) Now, assume that division A can sel the 1,700 units to other customers at $135 per unit, with variable marketing costs of $5 per unit. Begin by calculating the contribution margin from selling units to other customers. Then calculate the net beneth (cost) to the company a a whole. (Enter a net cost using parentheses or a minus sign.) Less: Variable marketing costs Contribution margin from selling units to othor customers Data table Purchase costs paid to external suppliers Less: Savings in variable costs Net cost to the compary as a result of purchasing from extemal suppliers \begin{tabular}{rr} 5 & 187,000 \\ 178,500 \\ \hline 5 & 8,500 \\ \hline \end{tabular} 7 Print Done Contribution margin from selling units to other customers 10 olve this Etext pages Get more help . Clear all Check More info Division C has in the past always purchased its requirement of a particular tractor-engine component from division A. However, when informed that division A is increasing its selling price to $130, division C's manager decides to purchase the engine component from external suppliers. Division C can purchase the component for $110 per unit in the open market. Division A insists that, because of the recent installation of some highly specialized equipment and the resulting high depreciation charges, it will not be able to earn an adequate return on its investment unless it raises its price. Division A's manager appeals to top management of Kelly - Elias for support in the dispute with division C and supplies the following operating data: C's annual purchases of the tractor-engine component 1,700 units A's variable cost per unit of the tractor-engine component $105 A's fixed cost per unit of the tractor-engine component $15