Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell to Division B. It has no other outlet for sales.
Cold Co has offered to sell the component to Division B for $140 per unit. If Division B accepts this offer, Division A will be shut.
If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole？

A. Increase of $65,000
B. Decrease of $78,000
C. Decrease of $88,000
D. Increase of $55,000