Neely Systems Corporation manufactures and sells various high-tech office automation products. Two divisions of Neely Systems Corporation are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a "super chip," that can be used by both the Computer Division and other external customers. The following information is available on this month's operations in the Computer Chip Division: Selling price per chip Variable costs per chip $50 $20 Fixed production costs $60,000 Fixed SG&A costs Monthly capacity External sales Internal sales $90,000 10,000 chips 6,000 chips 0 chips Presently, the Computer Division purchases no chips from the Computer Chips Division, but instead pays $45 to an external supplier for the 4,000 chips it needs each month. Refer to Neely Systems Corporation. If a transfer between the two divisions is arranged next period at a price (on 4,000 units of super chips) of $40, total profits in the Computer Chip division will Select one: a. rise by $80,000 compared to the prior period Ob. drop by $20,000 compared to the prior period c. rise by $20,000 compared to the prior period O d. drop by $40,000 compared to the prior period