Question 18 3 pts Assume a company has two divisions, Division A and Division B. Division...

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Question 18 3 pts Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) $ 60 Variable cost per unit $44 Fixed costs per unit (based on capacity) $8 Capacity in units 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 20,000 units on the outside market. If the manager of Division B would not agree to pay Divisions A's lowest acceptable transfer price, and instead purchased 4,000 component parts from an outside supplier, what effect would Division B's choice have on the company's profits? O Profits would decrease by $8.000 O Profits would increase by $8,000 O Profits would decrease by $12,000 O Profits would increase by $12,000 Question 18 3 pts Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) $ 60 Variable cost per unit $44 Fixed costs per unit (based on capacity) $8 Capacity in units 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 20,000 units on the outside market. If the manager of Division B would not agree to pay Divisions A's lowest acceptable transfer price, and instead purchased 4,000 component parts from an outside supplier, what effect would Division B's choice have on the company's profits? O Profits would decrease by $8.000 O Profits would increase by $8,000 O Profits would decrease by $12,000 O Profits would increase by $12,000