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Division X makes a part with the following characteristics: Production capacity 2 6 , 0 0 0 units Selling price to outside customers $ 2
Division X makes a part with the following characteristics:
Production capacity units
Selling price to outside customers $
Variable cost per unit $
Fixed cost, total $
Division Y of the same company would like to purchase units each period from Division X Division Y now purchases the part from an outside supplier at a price of $ each. Suppose Division X has sufficient excess capacity to handle all of Division Ys needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $ price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:
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