3.000 b) Kaliganj Company's Cabinet Division manufactures a standard cabinet for television sets. The cost per cabinet based on a capacity of 10,000 cabinets per year is as follows: Variable cost per cabinet Tk. 7,000 Fixed cost per cabinet Total cost per cabinet Tk. 10.000 Part of the Cabinet Division's output is sold to outside manufacturers of television sets and part is sold to Kaliganj Company's Quark Division, which produces a TV set under its own name. The Cabinet Division charges Tk. 14,000 per cabinet for all sales. The costs, revenue and net operating income associated with the Quark Division's TV set based on a capacity of 3,000 sets per year are given below: Selling price per TV set Tk.48,000 Variable costs per TV: Cost of the cabinet Tk. 14,000 Variable cost of electronic parts 21,000 Total variable costs (35,000) Contribution margin 13,000 Fixed costs per TV set (8.000) Net operating income per TV set Tk. 5.000 The Quark Division has an order from an overseas source for 1,000 TV sets. The overseas source wants to pay only Tk. 34,000 per set. Required: i. Assume that the Quark Division has enough idle capacity to fill the 1,000 set order. Is the division likely to accept the Tk. 34,000 price or to reject it? Explain. ii. Assume that both the cabinet Division and the Quark Division have idle capacity. Under these conditions, would it be advantageous for the company as a whole if the Page 3 of 4 Quark Division rejects the Tk. 34,000 price? Show computations to support your answer. iii. Assume that the Quark Division has idle capacity but that the Cabinet Division is operating at capacity and could sell all of its cabinets to outside manufacturers. Compute the profit impact to the Quark Division of accepting the 1,000 set order at the Tk. 34,000 unit price