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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

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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 31,800 units $ 21 $ 16 $ 101,900 Division B, another division of the same company, would like to purchase 14.700 units of the port each period from Division A Division B is now purchasing these parts from an outside supplier at a price of $19 each, Suppose that Division A is operating at capacity and consell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts to Division B at $19 per unit, the company as a whole will be: Multiple Choice worse off by 558,800 each period worse off by $29.400 each period There will be no change in the status of the company as a whole. Coco Division B, another division of the same company, would like to purchase 14,700 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $19 each 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 to Division B at $19 per unit, the company as a whole will be: Multiple Choice worse off by $58,800 cach period. worse off by $29.400 each period There will be no change in the status of the company as a whole. better off by $29.400 each period

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