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 has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $20 price internally and Division B continues to buy from the outside supplier, the company as a whole will be:

Multiple Choice

worse off by $86,500 each period.

worse off by $34,600 each period.

worse off by $51,900 each period.

worse off by $69,200 each period.