The SIGMA company has two subsidiaries E and F. Subsidiary E manufactures products with the following characteristics:

Unit sale price to external customers: $100

Unit variable cost: $40

Total fixed costs: $120,000

Maximum production capacity (in units): 20,000

E is able to sell all its production on the external market. F would like to buy 8,000 units from subsidiary E at $95 per unit, being the same price applied by its external supplier. In the event of a sale to section F, the unit variable cost incurred by E remains unchanged.

E is currently working at 70% of its production capacity. If E refuses to accept the $95 price internally and F continues to buy from the external supplier, what is the impact on the bottom line of the company as a whole? Question options:

Decrease of $150,000

Decrease of $360,000

Decrease of $320,000

Decrease of $40,000

No answer fits