A company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 60 $ $ 8 20,000 Division could use Division A's product as a component part in the manufacture of 4,000 units of its own newly designed product. Division B has received a quote of $61 from an outside supplier for a component part that is comparable to the one that Division A mokes. Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currenty selling 12000 units on the outside market. If the managers of the two divesions do not agree on a transfer price and Division B purchases 4,000 component parts from on outside supplier, what would be the effect on the company's profits? Multiple Choice Prots would decrease by $54,000 Profits would decrease by $60,000