Given the Following Data for Division X: Division Y

question 66

Multiple Choice

Given the following data for Division X: Division Y would like to purchase 15,000 units each period from Division X.Division X has ample excess capacity to handle all of Division Y's needs.Division Y now purchases from an outside supplier at a price of $20.If Division X refuses to accept an $18 price internally,the company,as a whole,will be worse off by:

• A)$30,000.
• B)$75,000.
• C)$90,000.
• D)$120,000.

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Definitions:

Business Clients

Organizations or individuals who purchase goods or services provided by a business, forming a vital part of the company's customer base.

Liberalization

The process of eliminating restrictions and barriers to free trade or other economic activities, often to encourage economic development.