Division X makes a part with the following characteristics:

Production capacity 33,000 units

Selling price to outside customers $34

Variable cost per unit $27

Fixed cost, total $108,000

Division Y of the same company would like to purchase 10,080 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $33 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 $33 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:

worse off by $70,560 each period.

better off by $10,080 each period.

worse off by $60,480 each period.

worse off by $20,160 each period.