Lou Company's Records Reveal the Following: Variable Costs

Multiple Choice

Lou Company's records reveal the following: Variable costs:
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Division X wants to transfer the components to Division Y for $34 each.Division Y can buy the component for $32 per unit from an outside supplier.Division X has no excess capacity.The manager of Division Y should ________.

A) buy the components from the outside supplier for $32 each
B) buy the components from Division X at $34 each
C) buy the components from an outside supplier for $33 each
D) none of the above