Division Y of the same company would like to purchase 10,025 units each period from...
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Division Y of the same company would like to purchase 10,025 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $22 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $22 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $70,175 each period. better off by $10,025 each perioc. worse off by $60,150 each perioc. worse off by $20,050 each period better off by $60,150 each period. Division Y of the same company would like to purchase 10,025 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $22 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $22 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: Multiple Choice worse off by $70,175 each period. better off by $10,025 each perioc. worse off by $60,150 each perioc. worse off by $20,050 each period better off by $60,150 each period
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