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help asap Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,075 units each period
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Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,075 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $32 each. Suppose Division X has sufficient 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 $32 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: worse off by $70,525 each period. better off by $10,075 each period. worse off by $60,450 each period. worse off by $20,150 each period. better off by $60,450 each period Step by Step Solution
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