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The DVD Division of Sound Company makes and sells compact DVD players (DVDP) that it...

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Accounting

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The DVD Division of Sound Company makes and sells compact DVD players (DVDP) that it presently sells to outside customers. Budgeted costs next moth for the DVD Division are as follows: Sales of DVDPS to outside 2,800 units customers $185 per Selling price to outside unit customers $120 per unit Unit variable production costs MaxiSound, another divisionof Sound Company, would like to buy 1,000 of the DVDPS from the DVD Division. An outside supplier has offered to sell similar DVDPS to MaxiSound for $170 each. Assume that DVD Division's monthly production apacity is 2,800 units. If the DVD Division sells 1,000 DVD Ps to MaxiSound for $170 each, the monthly effect on the profits of DVD Division will be a: A. $15,000 decrease B. $42,000 decrease C. $50,000 increase no change D

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