Given the following data for Division L:Selling price to outside customers: $150Variable cost/unit: $80Fixed cost per unit (based on capacity): 30capacity (in units): 50000Division N would like to purchase 10,000 units from Division L at a price of $125 per unit. Division L has no excess capacity to handle Division N’s requirements. Division N currently purchases from an outside supplier at a price of $140. If Division L accepts a $125 price internally, the company, as a whole, will be better or worse off bySelect one:A.$600,000B.$100,000C.$115,000D.$250,000please provide the explanation!2. Stone Industries Ltd manufactures a product with the following costs per unit at the expected production of 30000 unitsDirect materials $5Direct labour $15Variable Manufacturing Overheads $8Fixed Manufacturing Overheads $6The company has the capacity to produce 60000 units. The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2000 units. If the special order is accepted, the effect on Adelaideâ€™s operating income would be aSelect one:A. $24,000 increase.B. $34,000 increase.C.$10,000 decrease.D.$12,000 decrease.
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