Division X makes a part with the following characteristics:

Production capacity		30,500	units
Selling price to outside customers	$	29
Variable cost per unit	$	22
Fixed cost, total	$	105,500

Division Y of the same company would like to purchase 10,055 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $28 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 $28 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:

Multiple Choice

worse off by $70,385 each period.

better off by $10,055 each period.

worse off by $60,330 each period.

worse off by $20,110 each period.

better off by $60,330 each period.

Using the information below, compute the manufacturing cycle time:

Process time	5.0		hours
Inspections time	0.3		hours
Move time	0.4		hours
Wait time	0.7		hours
Warehouse storage time	81.0		hours

Multiple Choice

6.1 hours.

5.3 hours.

6.4 hours.

87.4 hours.

5.7 hours.