The Jupiter Division of Space Ltd produces dilithium crystals. One-third of its output is sold to the Antari Division, and the remainder is sold externally. Jupiter's estimated sales and cost data for the coming year are:
Assume that Jupiter cannot sell any additional crystals externally. If the Antari Division has an opportunity to buy from an outside supplier at $1.40 per crystal and Jupiter refuses to meet this price, the company as a whole will be
A) $1,250 better off
B) $3,750 worse off
C) $6,250 better off
D) $5,000 worse off
Correct Answer:
Verified
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