Business, 04.07.2020 23:01 sarahnd6907

Division P of Launch Corporation has the capacity for making 81,000 wheel sets per year and regularly sells 66,000 each year on the outside market. The regular sales price is $160 per wheel set, and the variable production cost per unit is $113. Division Q of Launch Corporation currently buys 36,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $150 per wheel set. If Division Q were to buy the 36,000 wheel sets it needs annually from Division P at $135 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be:

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Division P of Launch Corporation has the capacity for making 81,000 wheel sets per year and regularl...