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

Question

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

Quizplus · Accepted Answer

The Answer of 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

The Jupiter Division of Space Ltd Produces Dilithium Crystals