Business, 30.03.2021 02:10 heleneallie7ou1fnk

Division P of Launch Corporation has the capacity for making 78,500 wheel sets per year and regularly sells 63,500 each year on the outside market. The regular sales price is $135 per wheel set, and the variable production cost per unit is $93. Division Q of Launch Corporation currently buys 33,500 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $125 per wheel set. If Division Q were to buy the 33,500 wheel sets it needs annually from Division P at $115 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 78,500 wheel sets per year and regularl...