Division $G$ makes a part that it sells to customers outside of the company. Data

concerning this part appear below:

Selling price to outside

customers

Variable cost per unit

Total fixed costs

$$87$

Capacity in units

$$40,000$

$4,000$

Division $H$ of the same company would like to use the part manufactured by Division

G in one of its products. Division $H$ currently purchases a similar part made by an

outside company for $$83$ per unit and would substitute the part made by Division G$.$

Division $H$ requires $500$ units of the part each period. Division $G$ has ample capacity

to produce the units for Division $H$ without any increase in fixed costs and without

cutting into sales to outside customers. If Division $G$ sells to Division $H$ rather than

to outside customers, the variable cost be unit would be $$2$ lower. What should be