• A; No; making the tires will save Traker $16,800.

• B: Yes; buying the tires will save Traker $16,800.

• C: No; making the tires will save Traker $33,600.

• D: Yes; buying the tires will save Traker $33,600.

The Tire Division of Traker Company produces tires for off-road sport vehicles. One-third of Tire's output is sold to an internal division of Traker, the remainder is sold to outside customers. Tire's estimated operating profit for the year is: Sales Variable costs Fixed costs Operating profits Unit sales Internal $168.00 112.966 36.238 5 26,866 11.28 Outside $448,800 224,60e 7 3, ang $152,698 22.488 The internal division has an opportunity to purchase 11.200 tires of the same quality from an outside supplier on a continuing basis. The Tire Division cannot sell any additional products to outside customers. Should Traker Company allow its internal division to purchase the tires from the outside supplier at $13.00 per unit