Special-order Problem with Divisional Performance Measurement - The West division of E\&W Ltd. has received a special order for 10,000 units of its product @ $9 per unit. - The normal selling price is $10 per unit. - The division has excess capacity and could produce the additional 10,000 units without any change in total fixed costs. - The variable costs per unit for this special order would be as follows: DM $3, DL $2, VOH$2, and variable selling costs $1. - The manager of the West division is paid a salary, plus a bonus based on divisional profit. - In computing divisional profit, the firm allocates general corporate costs to its two divisions (West and East) based on divisional sales. - This year, general corporate costs are expected to be $600,000 and the sales of the West and East divisions are expected to be $1,000,000 and $2,000,000, respectively. - Required: Will the West division manager want to accept or reject this special order? Explain. If it is accepted, what would be the change in (i) the division's profit, and (ii) the firm's profit