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$1.$

If Division A proposes to buy $50,000$ units from Division B at $$80$ per unit, what would be the effect of accepting this proposal on Division B$\text{'}$s operating income? What would be the effect on the operating income of Phoenix Incorporated as a whole?

$2.$ Now suppose Division A could purchase from multiple suppliers and would accept partial shipment from Division B$.$ How many units should Division B sell to Division A at $$75$ per unit, if any? What would be the effect on Division B$\text{'}$s operating income? What would be the effect on the operating income of Phoenix Incorporated as a whole?

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This question already posted and received correct answer. Kindly Don't answer.