The Dubs Division of Fast Company (the parent company) produces wheels for off- road sport vehicles. Dubs has two products, 1 and 2. Dubs is currently operating at its capacity of 2,500 units and expects to produce and sell 1,500 units of P1 and 1,000 units of P2. As part of the manufacture of wheels Dubs also manufactures a set of wheel (lug) nuts for each wheel. A supplier has offered to sell Dubs sets of wheel nuts for $35 per set. The accounting records for Dubs assigns the following costs to the manufacture of one wheel nut set: Direct Materials $12.00; Direct Labor $6.00; and Variable Mfg. OH $9.00. All fixed costs are common to the two products and are allocated by management. The contribution margins per unit of Pl and P2 are $140 and $120 respectively, excluding the cost of the wheel nut set. Dub's believes that if it purchases the wheel nuts from a supplier it would be able to increase capacity so that it could increase sales of P2 by 510 units (wheel nut sets would have to be purchased for these units as well. What is the total increase in profits Dubs would earn by accepting the supplier's offer? Round your solution to the nearest $1.00. If it would result in a loss to buy from the supplier express your answer as a negative number such as -2000. QUESTION 10 .... ... ... .. The Dubs Division of Fast Company (the parent company) produces wheels for off- road sport vehicles. Dubs has two products, 1 and 2. The two products only differ in how they are marketed. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the upcoming year is based on sales of 1000 units of each product and is given next: Product 1 Product 2 Sales Price $280 each $400 each Var Meg $55 each 555 each Var G&A $100 each $110 each Fixed Meg $60,000 $60,000 Fixed G&A $85,000 $133,000 Unless otherwise stated the fixed costs given above are allocated costs and unavoidable. As a result of increased foreign competition Dubs' managers are concerned that it would have to cut the unit price of P1 by 20% to maintain its current sales volume. Rather than cut the price of P1, management is considering stopping production of Fi and only producing 1,000 units of P2. Calculate the total divisional profit if il is dropped. Round your solution to the nearest $1.00. If the total profits result in a loss you should express your answer as a negative number such as -2000