Given the Following Data for Division L: Division N

question 60

Multiple Choice

Given the following data for Division L: Division N would like to purchase 10,000 units from Division L at a price of $125 per unit.Division L has no excess capacity to handle Division N's requirements.Division N currently purchases from an outside supplier at a price of $140.If Division L accepts a $125 price internally,the company,as a whole,will be better or worse off by:

• A)$600,000
• B)$(100,000)
• C)$115,000
• D)$250,000