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Division X makes a part with the following characteristics Production capacity Selling price to outside customers Variable cost per unit Pixed cost, total 32,000 units

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Division X makes a part with the following characteristics Production capacity Selling price to outside customers Variable cost per unit Pixed cost, total 32,000 units $ 32 25 $107.000 Division Y of the same company would like to purchase 10,070 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $31 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 $31 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Choice o worse off by $70,490 each period. o better off by $10,070 each period. : o worse off by $60,420 each period. o worse off by $20,140 each period. o better off by $60,420 each period

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