26)

Division A makes a part with the following characteristics: Production capacity in units 15,000 units Selling price to outside customers $25 Variable cost per unit $18 Total fixed costs $60,000 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $24 each. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $24 price internally and Division B continues to buy from the outside supplier, the company as a whole will be: worse off by $35,000 each period. better off by $15,000 each period. worse off by $30,000 each period. worse off by $10,000 each period