Q.4 Taner Okur, manager of an electronics division, was considering an offer by Ezgi Yazar, manager of a sister division. Ezgis division was operating below capacity and had just been given an opportunity to produce 10.000 units of one of its products for a customer in a market not normally served. The opportunity involves a product that uses an electrical component produced by Taner's division. Each unit that Ezgi's department produces requires two of the components. However, the price the customer is willing to pay is well below the price usually charged; to make reasonable profit on the order, Ezgi needed a price concession from Taner's division. Ezgi had offered to pay full manufacturing cost for the parts. Ezgi had supplied the following unit cost and price information concerning the special order, excluding the cost of the electrical component: 30 TL Selling price Less costs: Direct material Direct labor Variable overhead Fixed overhead Gross profit 15 7 2 3 3 TL The normal selling price of the electrical component is 1,60 TL per unit. Its full manufacturing cost is 1,20 TL (1,00 TL variable and 0,20 TL fixed). Ezgi had argued that paying 1,60 TL would wipe out the gross profit and result in her division showing a loss. Taner was interested in the offer because his division was also operating below capacity (the order would not use all the excess capacity). Required: Should Taner accept the order at a selling price of 1,20 TL per unit? By how much will his division's profits be changed if the order is accepted? By how much will the profits of Ezgi's division change if Taner agrees to supply the part at full cost