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Division A makes a part with the following characteristics: Production capacity in units 30, 200 units Selling price to outside customers $ 22 Variable cost

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Division A makes a part with the following characteristics: Production capacity in units 30, 200 units Selling price to outside customers $ 22 Variable cost per unit $ 17 Total fixed costs $ 102,900 Division B, another division of the same company, would like to purchase 17,300 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $20 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 $20 per unit, the company as a whole will be: Multiple Choice There will be no change in the status of the company as a whole. better off by $34& worse off by $69&. worse off by $34&

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