Division a Makes a Part with the Following Characteristics

Multiple Choice

Division A makes a part with the following characteristics: Division B, another division of the same company, would like to purchase16,100 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $19 each.Suppose that Division A is operating at capacity and can sell all of its output to outside customers at itsusual selling price. If Division A agrees to sell the parts to Division B at $19 per unit, the company as a whole will be:

A) better off by $64&.
B) worse off by $128&.
C) worse off by $64&.
D) There will be no change in the status of the company as a whole.