Phoenix Inc., a cellular communication company has multiple divisions. Each division's management is compensated based on the division's operating income. Division A currently purchases cellular equipment from outside markets and uses it to produce communication systems. Division B produces similar cellular equipment that it sells to outside customers but not to division A at this time. Division A's manager approached division B's manager with a proposal to buy equipment from division B. If it produces the cellular equipment that division A desires, division B would incur variable manufacturing costs of $ED per unit Relevant information about division B: Sells 5D, units of equipment to outside customers at $130 per unit Operating capacity is currently E%, the division can perform at 1UU% Variable manufacturing costs are $T per unit Variable marketing costs are $8 per unit Fixed manufacturing costs are $58,{}i}il Income per unit for division A (assuming parts purchased outside, not from division B) Sales revenue $320 Manufacturing costs Cellular equipment Bi] Other materials 10 Fixed costs 4!] Total 131] |Gross margin 190 Marketing costs Variable 35 Fixed 15 Total 51] Operating income 1411 Required Division A wants to buy all 25,t]{]-[} units from division B at $?5 per unit. Should division B accept or reject the proposal? How would your answer differ if [a] division A requires all 25,['.IDD units in the order to be shipped by the same supplier, or (b) division A would accept partial shipment from division B? 1What range the managers of divisions A and B agree is the best price for each division