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 $ 41 $ 8 20,000 Division B 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 makes Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 17.000 units on the outside market. If the managers of the two divisions do not agree on a transfer price and Division B purchases 4,000 component parts from an outside supplier, what would be the effect on the company's profits? Multiple Choice Profits would decrease by $61,000 Profits would decrease by $63,000 Profits would decrease by $69,000 Fixed costs per unit (based on capacity) Capacity in units $ 8 20,000 Division B 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 makes. Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 17,000 units on the outside market. If the managers of the two divisions do not agree on a transfer price and Division B purchases 4,000 component parts from an outside supplier, what would be the effect on the company's profits? Multiple Choice Profits would decrease by $61,000 Profits would decrease by $63,000 Profits would decrease by $69,000 Profits would decrease by $57,000