Centurion Inc. manufactures lighting equipment. It consists of several operating divisions within its business. Division A has decided to go outside the company to purchase materials since Division B plans to increase its selling price for the same materials to $200. Information for Division A and Division B is given in the following table. Outside price for materials $150 Division A's annual purchases 10,000 units Division B's variable costs per unit $140 Division B's fixed costs, per unit $1,250,000 Division B's capacity utilisation 100% Task: 1. Will the company benefit, if division A purchases outside the company? Assume that division B cannot sell its materials to outside buyers. 2. Assume that division B can save $200,000 in fixed costs if it does not manufacture the material for division A. Should division A purchase from the outside market? 3. Assume the situation in task 1. If the outside market value for the materials drops $20, should division A buy from the outside? Explain.