Given the Following Data for Division M: Division T Would

question 6

Multiple Choice

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.
• E)$290,000.