Division X Makes a Part with the Following Characteristics

Multiple Choice

Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each.
-Suppose that Division X is operating at capacity and can sell all of its output to outside customers.If Division X sells the parts to Division Y at $17 per unit,the company as a whole will be:

A) better off by $10,000 each period.
B) worse off by $20,000 each period.
C) worse off by $10,000 each period.
D) There will be no change in the status of the company as a whole.