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Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,030 units each period from Division
Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,030 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $23 each. Suppose Division X has sufficient excess capacity to handle all of Division Y's needs without any Increase in fixed costs and without cutting Into sales to outside customers. If Division X refuses to accept the $23 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Cholce worse off by $70,210 each perlod. better off by $10,030 each perlod. worse off by $60,180 each perlod. worse off by $20,060 each perlod. better off by $60,180 each perlod
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