QUESTION 10

1. The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units), has the following sales and cost structure:

   Sales price per unit	$45.00
   Variable cost per unit	22.50
   Fixed cost (at capacity) per unit	15.00

   If the Overseas Division meets the outside supplier's price and sells the 10,000 widgets to National, the effect on overall company profits will be:

   	A.	$75,000 higher
   	B.	$150,000 lower
   	C.	$225.000 lower
   	D.	$300,000 higher