Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Variable cost per screen Fixed cost per screen $ 117 26* Total cost per screen $ 143 *Based on a capacity of 750,000 screens per year. Part of the Screen Division's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark Division, which produces an HDTV under its own name. The Screen Division charges $187 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $ 584 Variable cost per unit: Cost of the screen $ 187 Variable cost of electronic parts 232 Total variable cost 419 Contribution margin 165 Fixed costs per unit 85* $ 80 Net operating income per unit *Based on a capacity of 200,000 units per year. The Quark Division has an order from an overseas source for 5,100 HDTVs. The overseas source wants to pay only $397 per unit.