Assume 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: 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 quote of $56 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 15,000 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 $44,000 Profits would decrease by $24,500 Profits would decrease by $62,000 Profits would decrease by $31,000 Assume 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: 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 quote of $56 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 15,000 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 $44,000 Profits would decrease by $24,500 Profits would decrease by $62,000 Profits would decrease by $31,000