GTech is аn innоvаtive electrоnics mаnufacturing firm that has multiple divisiоns, all of them operating as independent profit centers. Two of these divisions are the Upstate Division (UD) and the Downstate Division (DD). The UD produces and sells three chips in the market: A10, B20, and C30. These three chips have the following prices and costs per unit: Manufacturing overhead in the UD totals $50,000, is all fixed, and is allocated using machine hours as the allocation base. All three chips need to be processed by a machine with a total capacity of 6,000 machine hours (mhrs) a year. Currently, the UD is working at capacity, and the machine is the bottleneck. The required machining times per unit for the three valves are (in machine hours per unit): The current maximum external annual demand is 5,500 units for the C30, 8,000 units for the B20, and 4,000 units for the A10. Assume prices are constant and all output up to the stated demand limits can be sold. The DD produces and sells radios to the external market. Recently, the DD designed a new product, the SupaRadio, with the following cost structure per unit: New chip D40, bought from an external supplier for $50 (market price) Shipping costs: $5 Other components: $33 Direct labor: $20 The market price for the Super Radio is $132. The DD is asking the UD to manufacture 8,000 units of D40. The DD wants either 8,000 units or none, because the $ 50-per-unit price from an external supplier was based on this volume. Also, the $5 shipping cost applies only when D40 is purchased externally. If the UD accepts the order, the D40 consumes 0.6 machine hours per unit and has the following costs for the UD: