Holiday Corp. has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production Quail's variable costs are $5.90 per widget while the full cost Is $8.90. Widgets sell on the open market for $15.80 each. If Quail is operating at capacity, what would be the cost savings if the transfer were made and Marlin currently is purchasing 195,000 units on the open market?

Cost savings when transfer are made = $0

Explanation:

In the question it was given that Quail is operating at capacity, then the  Minimum and Maximum transfer price would be market price = $15.80

Cost savings when transfer are made = No of unit Marlin purchase*(Maximum transfer price - Minimum transfer price)

Cost savings when transfer are made = 195,000 unit * ($15.80 - $15.80)

Cost savings when transfer are made = $3,081,000 - $3,081,000  

Cost savings when transfer are made = $0

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%