Saved Help Save & Exit Su Division P of Launch Corporation has the capacity for...
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Saved Help Save & Exit Su Division P of Launch Corporation has the capacity for making 77,500 wheel sets per year and regularly sells 62,500 each year on the outside market. The regular sales price is $125 per wheel set, and the variable production cost per unit is $85. Division of Launch Corporation currently buys 32,500 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $115 per wheel set. If Division Q were to buy the 32,500 wheel sets it needs annually from Division P at $107 per Wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be: Multiple Choice O $625.000 o O $375,000 o O $975,000 o O $115.000 o C 5953125
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