10 points QUESTION 6 The Dubs division of Fast Company (the parent company produces wheels for off road sport vehicles. One half of Dub's output is sold to the Hoon division of Fast, the remainder is sold to outside customers. Dub's estimated operating profit for the year is shown in the table Internal Sales Totals External Sales $400,000 $300,000 Sales Var Mfg. $700,000 $320,000 $160,000 $40,000 $160,000 $50,000 Var G&A $100,000 CM $100,000 $180,000 $280,000 $24,000 $32,000 $56,000 Fixed Mig Fixed G&A Op. Profits $36,000 $40,000 1,000 $48.000 $100,000 $84,000 $140,000 Unit Sales 1,000 2,000 Unless otherwise stated assume the fixed costsven above are allocated costs and unavoidable. Hoon division has an opportunity to purchase 1,000 wheels of the same quality from an outside supplier on a continuing basis for $250.00 per wheel What would be the increase in Hoon division's total operating profits if Fast Company allows the Hoon division to purchase the wheels it needs from the outside supplier? 10 points QUESTION 6 The Dubs division of Fast Company (the parent company produces wheels for off road sport vehicles. One half of Dub's output is sold to the Hoon division of Fast, the remainder is sold to outside customers. Dub's estimated operating profit for the year is shown in the table Internal Sales Totals External Sales $400,000 $300,000 Sales Var Mfg. $700,000 $320,000 $160,000 $40,000 $160,000 $50,000 Var G&A $100,000 CM $100,000 $180,000 $280,000 $24,000 $32,000 $56,000 Fixed Mig Fixed G&A Op. Profits $36,000 $40,000 1,000 $48.000 $100,000 $84,000 $140,000 Unit Sales 1,000 2,000 Unless otherwise stated assume the fixed costsven above are allocated costs and unavoidable. Hoon division has an opportunity to purchase 1,000 wheels of the same quality from an outside supplier on a continuing basis for $250.00 per wheel What would be the increase in Hoon division's total operating profits if Fast Company allows the Hoon division to purchase the wheels it needs from the outside supplier