could you please help explain how to get this answer? i believe it is c

Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver could use in its

production. Silver currently is purchasing 50,000 units from an outside supplier for $25. Gold is

operating at less than full capacity and has variable costs of $13.50 per unit. The full cost to

manufacture the unit is

$20. Gold currently sells 450,000 units at a selling price of $27. If an internal transfer is made, variable

shipping and administrative costs of $1 per unit could be avoided. If the internal transfer is made, what

would be the impact on Tiffany Company's overall profits?

A.

$625,000 increase

B.

$1,125,000 increase

C.

$225,000 decrease

D.

No change in profits