Given the following data for Division X: Division Y would like to purchase 15,000 units each period from Division X.Division X has ample excess capacity to handle all of Division Y's needs.Division Y now purchases from an outside supplier at a price of $20.If Division X refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$30,000.
B)$75,000.
C)$90,000.
D)$120,000.

Question

Given the following data for Division X:  Division Y would like to purchase 15,000 units each period from Division X.Division X has ample excess capacity to handle all of Division Y's needs.Division Y now purchases from an outside supplier at a price of $20.If Division X refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$30,000. 
B)$75,000. 
C)$90,000. 
D)$120,000.

Quizplus · Accepted Answer

The Answer of Given the following data for Division X:  Division Y would like to purchase 15,000 units each period from Division X.Division X has ample excess capacity to handle all of Division Y's needs.Division Y now purchases from an outside supplier at a price of $20.If Division X refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$30,000. 
B)$75,000. 
C)$90,000. 
D)$120,000.

Given the Following Data for Division X: Division Y