Required information Division T of Clocker Company makes a timer which sells for $30 to outside customers. The division has supplied the following data concerning the timer. Monthly capacity. Variable cost per unit. Fixed cost per unit 12,000 timers $15 $10 Presently, Division S of Clocker Company is currently buying 5,000 similar timers each month from an overseas supplier at $27 each. Division S would like to acquire its timers from Division T if the price is right. Suppose Division T is operating at full capacity and can sell all of the timers it produces to outside customers at its usual selling price. If Division T meets the price of the overseas supplier (ie., $27) and sells 5,000 timers to Division S each month, the effect on the monthly net operating income of the company as a whole will be: Multiple Choice increase of $15,000 9 < Prev 24 25 of 32 Next >