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Division X makes a part with the following characteristics: Production capacity 34,200 units Selling price to outside customers $22 Variable cost per unit $17 Fixed

Division X makes a part with the following characteristics: Production capacity 34,200 units Selling price to outside customers $22 Variable cost per unit $17 Fixed cost, total $102,000 Division Y of the same company would like to purchase 12,800 units each period from Division X. Division Y now purchases the part 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. If Division X sells the parts to Division Y at $20 per unit, the company as a whole will be: There will be no change in the status of the company as a whole. worse off by $25? each period. better off by $25? each period. worse off by $51&

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