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Given the following data for Division X: Selling price to outside customers $ 28 Variable cost per unit 14.25 Fixed cost - Total 50,000 Capacity

Given the following data for Division X:

Selling price to outside customers $ 28
Variable cost per unit 14.25
Fixed cost - Total 50,000
Capacity (in units) 45,000

Division Y would like to purchase 16,500 units each period from Division X. Division X has ample excess capacity to handle all of Division Y's needs. Division Y now purchases from an outside supplier at a price of $21.5. If Division X refuses to accept an $19.5 price internally, the company, as a whole, will be worse off by:

$86,625.
$119,625.
$107,250.
$226,875.

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