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QUESTIONS Division A of XYZ Co. produces units that can either be sold to outside customers or transferred to XYZ's Division B. The following data
QUESTIONS Division A of XYZ Co. produces units that can either be sold to outside customers or transferred to XYZ's Division B. The following data are available from the last year: Division A Production capacity in units Selling price per unit to outside customers Variable cost per unit Total fixed production and selling costs 20,000 $25 $15 $80,000 4,000 $18 Division B Number of units needed annually Price per unit paid to an outside supplier Suppose that the Division A can only sell 16,000 units annually to outside customers. If 4,000 units are transferred internally at a transfer price of $17, how much better off or worse off would the company as a whole be? O A. $12,000 worse off O B. $12,000 better off o C. $4,000 worse off OD. $4,000 better off
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