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If quail is operating at capacity what would be the cost

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 per widget while the full cost is $7. Widgets sell on the open market for $12 each. If Quail is operating at capacity, what would be the cost savings if the transfer was made and Marlin currently is purchasing 100,000 units on the open market?

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Accounting Basics: If quail is operating at capacity what would be the cost

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Accounting Basics: If quail is operating at capacity what would be the cost

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