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Division P of Launch Corporation has the capacity for...

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Accounting

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Division P of Launch Corporation has the capacity for making 83,000 wheel sets per year and regularly sells 68,000 each year on the outside market. The regular sales price is $180 per wheel set, and the variable production cost per unit is $129. Division Q of Launch Corporation currently buys 38,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $170 per wheel set. If Division Q were to buy the 38,000 wheel sets it needs annually from Division P at $151 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be: $793,000 $1,558,000 $71.000 to search

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