Blue and Green are both divisions in a large, multinational corporation. Each division operates independently. Managers are compensated based in part on the net income that their division is able to achieve Both divisions make and market the same products, but they operate in different geographic regions. As with many firms in the current time, both divisions face an uncertain operating environoment and have been struggling to find ways to move forward given the new situation. Selected information for 2020 for the two divisions follows:

Division Blue Green SP $42 $45 Units produced 86,000 38,600 Units sold 85,000 35,400 Unit cost (variable costing) $31 $28 Unit cost (absorption costing) $36 $37 Break even point (in units) 6,125 4,320 DOL 2.45 2.77 NI $423,400 $185,300

Which division do you believe is the most risky? It is not necessary to do additional computations. Assume the amounts provided are correct. State clearly which division is more risky and support your answer with the data provided. PLEASE SEND ME STEP BY STEP SOLUTION AND PROMPTLY TQ SUBJECT IS MANAGEMENT ACCOUNTING TOPIC: ABSORPTION AND VARIABLE COSTING