Question
Div A makes a part with the following data. Div B, another div of the company, would like to purchase 5,000 units of the part
Div A makes a part with the following data. Div B, another div of the company, would like to purchase 5,000 units of the part each period from Div A. Div B is now purchasing these parts from an outside supplier at $24.00 each. Suppose that Div A has capacity to handle all of Div B's needs. If Div A refuses to accept the $24.00 price internally and Div B continues to buy from the outside supplier, the company will be
Production capacity in units 15,000 units Selling price to outside customers $25.00 Variable cost per unit $18.00 Total fixed costs $60,000
Group of answer choices
worse off by $30,000 each period.
worse off by $35,000 each period.
worse off by $10,000 each period.
better off by $15,000 each period.
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