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Manufacturing Division would like to purchase 15,000 units from the Wrangle Division at a price of $300 per unit. Wrangle division has no excess capacity
Manufacturing Division would like to purchase 15,000 units from the Wrangle Division at a price of $300 per unit. Wrangle division has no excess capacity to handle the Manufacturing Division's requirments. The Manufacturing Division currently purchases from an outside supplier at a price of $325. If the Wrangle Division accepts a $300 price internally, by what amount will the company, as a whole, be better or worse?
a. $2,780
b. $3,210
c. $3,150
d. $2,950
** Edit, a variable was not provided for the question
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