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Division X makes a part with the following characteristics: Division Y another division of the company would like to purchase 17,300 units of the part
Division X makes a part with the following characteristics: Division Y another division of the company would like to purchase 17,300 units of the part each period from Division X. Division Y is now purchasing these parts from an outside supplier at a price of $20 each. Suppose that Division X is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division X sells the parts to Division Y at $20 per unit, the company as a whole will be: better off by $34,600 each period. worse off by $69,200 each period. worse off by $34,600 each period. There will be no change in the status of the company as a whole
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