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1 pts Question 10 Timmy and Tommy Nook decided to split Nook's Cranny into two divisions of the same decentralized company. They named their divisions

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1 pts Question 10 Timmy and Tommy Nook decided to split Nook's Cranny into two divisions of the same decentralized company. They named their divisions Timmy's Tools and Tommy's Furniture. Tommy would like to buy 2,000 sets of tools from Timmy, but could purchase them from an outside supplier for $18. Suppose Timmy's Tools has idle capacity to handle all of Tommy's needs without any increase in fixed costs or cutting sales to outside customers. Details about Timmy's Tools are below: Production capacity in units 8,000 units Selling price to outside customers $24 Variable cost per unit $15 Total fixed costs $32,000 If Timmy refuses to sell to Tommy for $18 per set, how much better (worse) off would Nook's Cranny be? $9,000 worse off $3.000 better off $6,000 worse off $1,000 better off $9.000 better off No better or worse off $6,000 better off $3,000 worse off

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