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13 Oak Inc. has two divisions: Digital and Analog. The Digital Division (which is operating at specialized circuit board called B610 which it sells to its regular customers production cost of $8.25 per unit and a fixed production cost of $1.50 per unit. The developed a new product for which it needs to use B610 as a component part. The cost Division's new product follows: capacity) makes a for $13 each. B610 has a variable Analog Division of the Analog B610 circuit board (desired cost) Other purchased parts (from outside vendors) Other variable costs Allocated fixed overhead and admin. costs $9.00 S30.00 520.75 S10.00 $69.75 Total cost per timing device The manager of the Analog's Division feels that to successfully market the new product she can't quote a price greater than $70 per unit. To keep the price at $70 or less, she can't pay more than 59 per unit to the Digital Division for each unit of B610. Suppose the total demand for the new product is expected to reach 10,000 units. However, the Division does not think $9 per unit for B610 is high enough to cover their cost. If the two divisions agree on a transfer price and the transfer does not take place, then how much will the whole company's profitability increase or decrease? A. Decrease by $ 47,500 B. Decrease by 62,500 C. Increase by S 62,500 D. Increase by 47,500 Digital do not .E. None of the above