QUESTION 3 The Dubs division of Fast Company (the parent company produces wheels for off-road sport vehicles. One half of Dub's output is sold to the Hoon division of Fast: the remainder is sold to outside customers. Dub's estimated operating profit for the year is shown in the table. Internal Sales External Sales Totals Sales $300,000 $400,000 $700,000 Var Mfg $160,000 $160,000 $320,000 Var G&A $60,000 $100,000 CM $40,000 $100,000 $180.000 $280,000 Fixed Mfg $24,000 $32,000 $56,000 Fixed G&A $36.000 $48.000 $84,000 Op. Profits $40,000 $100,000 $140,000 Unit Sales 1,000 1,000 2,000 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. Hoon division has an opportunity to purchase 1,000 wheels of the same quality from an outside supplier on a continuing basis for $250.00 per wheel. Assume the Dubs division has a total manufacturing capacity of 2,000 wheels per year. If the maximum external demand for the Dubs division's wheels is 1,500 units, what would be the Dubs division's total operating profits if Fast Company allows the Hoon division to purchase the wheels it needs from the outside supplier