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Check my w 6 Division A makes a part with the following characteristics: Production capacity in units Selling price to outside customers Variable cost per
Check my w 6 Division A makes a part with the following characteristics: Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 26,900 units 19 15 $102,900 Division B, another division of the same company, would like to purchase 18,600 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $17 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 $17 price internally and Division B continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $74,400 each period. worse off by $37,200 each period. worse off by $57,000 each period worse off by $23,000 each period
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