The Engine Division of the Taylor Corporation sells small engines to the outside market at a...

 

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The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $154 per engine. The Engine Division is currently operating at a capacity of 47,250 engines per year and is currently selling 34,750 engines annually. The variable cost of producing an engine is $108. The Snowmobile Division of the Taylor Corporation currently purchases 19,250 engines from an external supplier at a cost of $144 per engine. What is the overall benefit to the company if a transfer of 19,250 engines from the Engine Division to the Snowmobile Division takes place? The Engine Division of the Taylor Corporation sells small engines to the outside market at a selling price of $154 per engine. The Engine Division is currently operating at a capacity of 47,250 engines per year and is currently selling 34,750 engines annually. The variable cost of producing an engine is $108. The Snowmobile Division of the Taylor Corporation currently purchases 19,250 engines from an external supplier at a cost of $144 per engine. What is the overall benefit to the company if a transfer of 19,250 engines from the Engine Division to the Snowmobile Division takes place?

Answer rating: 100% (QA)

If the Engine Division transfers 19250 engines to the Snowmobile Division its sales to the outside m... View the full answer