Given the following data for Division L: Division N would like to purchase 10,000 units from Division L at a price of $125 per unit.Division L has no excess capacity to handle Division N's requirements.Division N currently purchases from an outside supplier at a price of $140.If Division L accepts a $125 price internally,the company,as a whole,will be better or worse off by:
A)$600,000
B)$(100,000)
C)$115,000
D)$250,000

Question

Given the following data for Division L:  Division N would like to purchase 10,000 units from Division L at a price of $125 per unit.Division L has no excess capacity to handle Division N's requirements.Division N currently purchases from an outside supplier at a price of $140.If Division L accepts a $125 price internally,the company,as a whole,will be better or worse off by:
A)$600,000 
B)$(100,000) 
C)$115,000 
D)$250,000

Quizplus · Accepted Answer

The Answer of Given the following data for Division L:  Division N would like to purchase 10,000 units from Division L at a price of $125 per unit.Division L has no excess capacity to handle Division N's requirements.Division N currently purchases from an outside supplier at a price of $140.If Division L accepts a $125 price internally,the company,as a whole,will be better or worse off by:
A)$600,000 
B)$(100,000) 
C)$115,000 
D)$250,000

Given the Following Data for Division L: Division N