Division S of Kracker Company makes a part that it sells to other companies. Data on...

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Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market per 30 unit Variable costs per unit per 22 unit Fixed costs per unit (based on capacity) per 7. unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. %24 %24 Fixed costs per unit (based on capacity) per unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: O worse off by $80,000 each period. Oworse off by $70,000 each period. Obetter off by $20,000 each period. worse off by $20.000 each period. Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market per 30 unit Variable costs per unit per 22 unit Fixed costs per unit (based on capacity) per 7. unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. %24 %24 Fixed costs per unit (based on capacity) per unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: O worse off by $80,000 each period. Oworse off by $70,000 each period. Obetter off by $20,000 each period. worse off by $20.000 each period.

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Effect of the decision Division S Loss of sales to outside ... View the full answer