Use the Following Information for the Next 2 Questions

question 19

Multiple Choice

Use the following information for the next 2 questions.
The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units) , has the following sales and cost structure:
-If the Overseas Division meets the outside supplier's price and sells the 10,000 widgets to National, the effect on overall company profits will be

• A) $ 75,000 higher
• B) $150,000 lower
• C) $300,000 higher
• D) $225.000 lower

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Definitions:

Itch Mite

A small parasite that causes severe itching by burrowing into the skin, leading to conditions such as scabies.

Contagious

Can be spread from one individual to another through either direct or indirect means of contact.

Pigment

Substances that give color to materials and biological tissues, used in painting, manufacturing, and various biological functions.