The CD Division of Acoustic Electronics makes compact disk players (CDP). Monthly budgeted costs for the CD Division are as follows:

Sales of CDPs to external customers	2 800 units
Selling price per CDP to external customers	R185
Unit variable production cost	R120

MaxiSound, another division of Acoustic Electronics, would like to buy 1,000 CDPs from the CD Division. An outside supplier has offered to sell similar CDPs to MaxiSound for R170 each. Assume the CD Division's monthly production capacity is 3,200 units. MaxiSound will purchase CDPs from the external supplier if they are not available from the CD Division. If the CD Division sells 1,000 CDPs to MaxiSound, determine the effect on the monthly profits of Acousta Electronics as a whole.

Answer rating: 100% (QA)

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