North Division has the following information:Oriole, Inc. can produce $100$ units of a component part with the following costs:

If Oriole Inc. can purchase the component externally for $$87500$ and only $$7800$ of the fixed costs can be avoided, what is the correct

"make$-$or$-$buy decision"?

Make and save $$4700.$

Make and save $$1000.$

Buy and save $$12500.$

Buy and save $$1000.$

Variable costs $,324000$

Fixed costs $,417000$

If this division is eliminated, the fixed costs will be allocated to the company's other divisions. What is the incremental effect on net

income if the division is dropped?

$$266000$ decrease

$$173000$ increase

$$151000$ increase

$$417000$ decrease