Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 per month based on monthly production of 4,000 units. Division B can acquire the product from an alternate supplier for $31 per unit or from Division A for $30 plus $2 per unit in transportation costs in addition to the transfer price charged by Division A.

Required:
(a)	What is the net advantage or disadvantage per unit to the company if Division B decides to acquire the product from the outside supplier for $31. Assume that Division A can market all that it can produce. (Omit the "$" sign in your response.)

Net

(Click to select)advantagedisadvantage

$ per unit

(b)	If Division A had idle capacity sufficient to cover all of Division B's needs? What is the net advantage or disadvantage per unit to the company if Division B decides to acquire the product from the outside supplier for $31. (Omit the "$" sign in your response.)

Net

(Click to select)disadvantageadvantage

$ per unit