Division As cost accounting records show that the cost of its product is $153 per unit$100 in variable costs and $53 in fixed costs. The market price of the product, $162, barely covers Division As cost of production plus its selling and administrative costs. Division A has a maximum capacity of 110,400 units; it is currently producing and selling 75,400 units. Division B makes a product that uses Division As product and would like to purchase 10,400 units from Division A for $151. With $44 additional variable costs, Division B produces and sells the product for $232. Division As manager is not happy with Division Bs offer and is refusing to sell.

Calculate the increase in corporate income in the following situations:

a.	Division A sells 10,400 units to Division B for $151 each, and Division B produces and sells 10,400 units for $232.
b.	Division A does not sell to Division B. Division B purchases 10,400 units from an external supplier at $162 each and produces and sells 10,400 units for $232.

Increase in corporate income
a.	$
b.	$