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Division X makes a part with the following characteristics: Production capacity Selling price to outside customers 35 Variable cost per unit Fixed cost, total 33,580

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Division X makes a part with the following characteristics: Production capacity Selling price to outside customers 35 Variable cost per unit Fixed cost, total 33,580 units $28 $108,580 Division Y of the same company would like to purchase 10,085 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $34 each. Suppose Division X has ample 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 $34 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $70,595 each period Pby 7 of 30 ElI Next rooi) @oaP worse off by $70,595 each period. better off by $60,510 each period worse off by $60,510 each period. worse off by $20170 each period. better off by $10,085 each period

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