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What would be the cost savings

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Question - Momix Corp. has two divisions, King and Queen. King produces a widget that Queen could use in its production. King's variable costs are $5 per widget while the full cost is $8. Widgets sell on the open market for $14 each. If King is operating at capacity, what would be the cost savings if the transfer were made and Queen currently is purchasing 145,000 units on the open market?

Reference no: EM133180849

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