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Division A makes a part with the following characteristics: 1 Production capacity in units Selling price to outside customers Variable cost per unit Total fixed
Division A makes a part with the following characteristics: 1 Production capacity in units Selling price to outside customers Variable cost per unit Total fixed costs 30, 600 units $ 20 $ $ 13 $ 109,000 20:55:19 Division B, another division of the same company, would like to purchase 15,700 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $16 each. eBook Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts Division B at $16 per unit, the company as a whole will be: Multiple Choice O worse off by $62,800 each period. O O There will be no change in the status of the company as a whole. worse off by $125,600 each period. O better off by $62,800 each period
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