D4ivision X makes a part with the following characteristics:

Production capacity in units	28,200
Selling price to outside customers	$22
Variable cost per unit	$18
Fixed cost, total	$101,500

Division Y another division of the company would like to purchase 15,900 units of the part each period from Division X. Division Y is now purchasing these parts from an outside supplier at a price of $20 each.

Suppose that Division X is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division X sells the parts to Division Y at $20 per unit, the company as a whole will be:

There will be no change in the status of the company as a whole.

better off by $31,800 each period.

worse off by $63,600 each period.

worse off by $31,800 each period.