Question: Not sure if this is the correct answer, please show work. 12. Apie Post Division of the Woodhead company produces basic posts which can be
12. Apie Post Division of the Woodhead company produces basic posts which can be sold to outside customers or sold the Lamp of the Woodhead Last year the Lamp bought all 25,000 posts from the Post Division. The following data are available for last year's activities ofthe Post Division: 3000000 posts Capacity in units Selling price per post to outside customers $1.75 Variable costs per post. $0.90 Fixed costs, total $150,000 Su e transfers of posts to the Lamp Division cut into sales of the Post Division to outside customers by Further suppose that an outside supplier is willing to provide the Lamp Division with basic posts at AS each If the Lamp Division had chosen buy its from the outside supplier instead of the Post ion, the change in net operating income for the company e would have been A. $1,250 decrease Transfer B. $10,250 increase C. $1,000 decrease y d S5oox p $13,750 E. one of the above 3
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