Division X Makes a Part with the Following Characteristics

question 17

Multiple Choice

Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each.
-Suppose that Division X is operating at capacity and can sell all of its output to outside customers.If Division X sells the parts to Division Y at $17 per unit,the company as a whole will be:

• A)better off by $10,000 each period.
• B)worse off by $20,000 each period.
• C)worse off by $10,000 each period.
• D)There will be no change in the status of the company as a whole.

---

Definitions:

Tobacco Cessation

The process of discontinuing tobacco smoking.

Caffeinated Beverages

Drinks that contain caffeine, a stimulant that can improve mental alertness and physical performance but may also lead to negative health effects if consumed in excess.

Teratogenicity

The capability of a substance to cause birth defects by negatively affecting the development of a fetus when the mother is exposed to that substance during pregnancy.

Electrical Power Lines

Conduits for the transmission and distribution of electricity from power plants to consumers over long distances.