Given the following data for Handle Division: Selling price to outside customers$150 Variable cost per unit 80 Fixed cost per unit (based on capacity) 30 Capacity (in units) 50,000 The Cabinet Division would like to purchase 10,000 units from the Handle Division at a price of $125 per unit. Handle Division has no excess capacity to handle the Cabinet Division's requirements. The Cabinet Division currently purchases from an outside supplier at a price of $140. If the Handle Division accepts a $125 price internally, the company, as a whole, will be better or worse off by:
A. $115,000
B. $(100,000)
C. $600,000
D. $250,000
Answer: B
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