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 Total cost per screen $ 119 33 $ 152 *Based on a capacity of 780,000 screen 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 costs, revenue, and net operating income associated with the Quark Division's HDTV are given below: $ 583 $ 187 235 Selling price per unit Variable costs per unit: Cost of the screen Variable cost of electronic parts Total variable cost Contribution margin Fixed costs per unit Net operating income per unit 422 161 82 $ 79 *Based on a capacity of 160,000 units per year. The Quark Division has an order from an overseas source for 4,700 HDTVs. The overseas source wants to pay only $397 per unit. Required: 1. Assume that the Quark Division has enough idle capacity to fill the 4,700-unit order. Is the division likely to accept the $397 price or to reject it? Reject Accept 2. Assume that both the Screen Division and the Quark Division have idle capacity. Under these conditions, would it be advantageous for the company as a whole if the Quark Division rejects the $397 price? Price offered per player Less variable costs per player: Screen Division Quark Division 3. Assume that the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Compute the profit impact to the Quark Division of accepting the 4,700-unit order at the $397 unit price. Price offered per player Less: Lost revenue from sales of Screen to outsiders Variable cost of Quark Division