Questions 11 and 12 are based on the following information: ABC Corp. manufactures fancy mechanical pencils. Division A of the company creates specialized lead to be used in mechanical pencils. Division B takes lead and other raw material inputs and assembles them in to completed mechanical pencils. Division B thinks it is always smarter to purchase the specialized lead from within the company. Information for Divisions A and B is below: Division B Division A Capacity (units) 7.200 Fixed manufacturing $14.400 Variable manufacturing $12 per unit Selling Price of Product $17 per unit 4.350 $34,800 $9 per unit $40 per unit The only other supplier of the specialized lead sells it for $19 per unit. Both divisions have unlimited demand for their product. 2.94 pts Question 11 What is the difference in total income for the firm as a whole between Division A transferring 4,350 units to Division B or the transfer not occurring? $21.750 The net income would be the same under both scenarios $60,900 $8,700