Division $S$ of Kracker Company makes a part that it sells to other companies. Data on that part appear below:

Selling price on the intermediate market

Variable costs per unit

Fixed costs per unit $($based on capacity$)$

Capacity in units

$$30$ per unit

$$22$ per unit

$$7$ per unit

$50,000$ units

Division B$,$ another division of Kracker Company, presently is purchasing $10,000$ units of a similar product each period

from an outside supplier for $$28$ per unit, but would like to begin purchasing from Division $S.$

Suppose that Division $S$ has ample idle capacity to handle all of Division B$\text{'}$s needs without any increase in fixed costs or

cutting into sales to outside customers. If Division $S$ refuses to accept a transfer price of $$28$ or less and Division B

continues to buy from the outside supplier, the company as a whole will:

a$.$ gain $$20,000$ in potential profit.

b$.$ lose $$60,000$ in potential profit.

c$.$ lose $$70,000$ in potential profit.

d$.$ lose $$20,000$ in potential profit.