Calculate the benefit to beta in selling to gamma

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Reference no: EM133609984

Question: Sheridan International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $76 per unit, with the following costs based on its capacity of 201,800 units. Direct materials 27 Direct labour 14 Variable overhead 3 Fixed overhead 11 Beta is operating at 76% of normal capacity and gamma is purchasing 18,0000 units of the same component from an outside supplier for $73 per unit. Calculate the benefit, if any, to beta in selling to gamma 18,000 units at the outside supplier's price.

Reference no: EM133609984

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