Given the following data for Division M: Division T would like to purchase 15,000 units each period from Division M.Division M has ample excess capacity to handle all of Division T's needs.Division T now purchases from an outside supplier at a price of $40.If Division M refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$60,000.
B)$150,000.
C)$180,000.
D)$240,000.

Question

Given the following data for Division M:  Division T would like to purchase 15,000 units each period from Division M.Division M has ample excess capacity to handle all of Division T's needs.Division T now purchases from an outside supplier at a price of $40.If Division M refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$60,000. 
B)$150,000. 
C)$180,000. 
D)$240,000.

Quizplus · Accepted Answer

The Answer of Given the following data for Division M:  Division T would like to purchase 15,000 units each period from Division M.Division M has ample excess capacity to handle all of Division T's needs.Division T now purchases from an outside supplier at a price of $40.If Division M refuses to accept an $18 price internally,the company,as a whole,will be worse off by:
A)$60,000. 
B)$150,000. 
C)$180,000. 
D)$240,000.

Given the Following Data for Division M: Division T