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Division A makes a part with the following characteristics: Production capacity in units 31,000 units Selling price to outside customers $ 19 Variable cost per

Division A makes a part with the following characteristics:

Production capacity in units 31,000 units
Selling price to outside customers $ 19
Variable cost per unit $ 13
Total fixed costs $ 108,600

Division B, another division of the same company, would like to purchase 18,900 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $15 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 $15 per unit, the company as a whole will be:

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