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13 Oak Inc. has two divisions: Digital and Analog. The Digital Division (which is operating at capacity) makes a divi $13 each. B610 has a variable The Analog Division specialized circuit board called B610 which it sells to its regular customers for production cost of $8.25 per unit and a fixed production cost of $1.50 per unit. developed a new product for which it needs to use B610 as a component part. The cost of Division's new product follows: the Analog B610 circuit board (desired cost) Other purchased parts (from outside vendors) Other variable costs Allocated fixed overhead and admin. costs $9.00 $30.00 520.75 $10.00 $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 Digital Division for each unit of B610 than $9 per unit to the the Digital Suppose the total demand for the new product is expected to reach 10,000 units. However, 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 E. None of the above