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2 Division A makes a part with the following characteristics Production capacity in units 29,700 units Selling price to outside customers $ 22 Variable cost

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2 Division A makes a part with the following characteristics Production capacity in units 29,700 units Selling price to outside customers $ 22 Variable cost per unit $ 17 Total fixed costo $ 101,300 Division 0, another division of the same company, would like to purchase 14,400 units of the part each perlod from Division A Division is now purchasing these parts from an outside supplier at a price of $20 each Suppose thot Division Als operating at capacity and consell all of its output to outside customers at its usual selling price. If Division A agrees to sell the ports to Division Bot $20 per unit the company as a whole will be Multiple Choice better off by $28,800 cach period, worse off by $57,600 each period, worse off by $28,800 each period There will be no change in the status of the company as a whole

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