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

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Accounting

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 45866 engines per year and is currently selling 35656 engines annually. The variable cost of producing an engine is $96. The Snowmobile Division of the Taylor Corporation currently purchases 20236 engines from an external supplier at a cost of $138 per engine.

What is the overall benefit to the company if a transfer of 20236 engines from the Engine Division to the Snowmobile Division takes place?

Select one:

a. $268404

b. $849912

c. $0

d. $257732

PLEASE ANSWER ASAP

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