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The Lumber Division of Bramble Corp. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division.

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The Lumber Division of Bramble Corp. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period 300000 board feet Lumber Division Capacity Price per board foot Variable production cost per bd. ft. $5.50 $1.25 $0.50 Variable selling cost per bd. ft. Construction Division: Board feet needed Outside price paid per bd. ft 55000 $5 If the Lumber Division sells to the Construction Division, $0.45 per board foot can be saved in shipping costs. If the Lumber Division has sufficient excess capacity to fulfill the Construction Division's needs, what will be the effect on the company's overall contribution margin? Decrease by $27500 Decrease by $181500 Increase by $203500 Increase by $33000

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