Question
13.Given the following data for Wrangle Division: Selling price to outside customers 340 Variable cost per unit 150 Fixed cost per unit ( based on
13.Given the following data for Wrangle Division:
Selling price to outside customers 340
Variable cost per unit 150
Fixed cost per unit ( based on capacity ) 80
Capacity ( in units) 70,000
Manufacturing Division would like to purchase 15,000 units from the Wrangle Division at a price of $300 per unit. Wrangle division has no excess capacity to handle the Manufacturing Division's requirements. The Manufacturing Division currently purchases from an outside supplier at a price of $325. If the Wrangle Division accepts a $300 price internally, by what amount will the company, as a whole, be better or worse?
A.$(175,000)
B.$235,000
C.$(225,000)
D.$150,000
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