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The Gear Division makes a part with the following characteristics: The Motor Division of the same company would like to purchase 18,000 units each period

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The Gear Division makes a part with the following characteristics: The Motor Division of the same company would like to purchase 18,000 units each period from the Gear Division. The Motor Division now purchases the part from an outside suppller at a price of $33 each. Suppose the Gear Division has ample excess capacity to handle all of the Motor Division's needs without any increase in fixed costs an without impacting sales to outside customers. If the Gear Divislon refuses to accept the $33 price intemally and the Motor Division continues to buy from the outside supplier, the company as a whole will be: Multiple Choice better off by $18,000 each period worse off by $90,000 each period. worse off by $36,000 each period. worse off by $72,000 each period

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