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Question 9 (2.5 points) Division Sof Kracker Company makes a part that it sells to other companies. Data on that part appear below: 02 Selling

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Question 9 (2.5 points) Division Sof Kracker Company makes a part that it sells to other companies. Data on that part appear below: 02 Selling price on the intermediate market Variable costs per unit 30 per unit per $ 22 unit per $ 7 unit 50,000 units Fixed costs per unit (based on capacity) Capacity in units 5 18 Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Fixed costs per unit (based on capacity) Capacity in units unit $ per 7 unit 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: worse off by $80,000 each period. worse off by $70,000 each period. better off by $20,000 each period. worse off by $20,000 each period

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