The following information relates to Questions 1 to 3. Spicy Red Pty Ltd has two divisions: Chilii Division (that farms chilies) and Sauce Division (that makes chilli sauce). Spicy Red requires that all transfers between divisions be recorded at variable cost as a transfer price. Divisional managers have complete autonomy in choosing their sources of customers and suppliers. The capacity for the Chilli Division is 250, 000 kgs of chillies per month. Chilli Division sells 40% cent of its chillies to the Sauce Division, while the remainder of the sales are to external customers. The monthly budget information for the Chilli Division, based on full capacity, is presented below. 100, 000 150, 000 250, 000 10, 000 22,500 32, 500 10,000 15,000 25,000 Chilli Division receives a special offer from a new customer for 98, 000 kgs of chilies at a special price of $ 0.26 per kg. If the special offer were accepted, Chilli Division would be unable to supply those units to the Sauce Division. The Sauce Division could purchase chilies from an external supplier for the price of $0.4 per kg. Question 1 Assuming the Chilli Division manager agrees to the special offer, calculate the effect of the decision on the profit of Spicy Red as a whole. Please incorporate a negative sign if the answer is a reduction in profit. $ 43720 Your last answer was interpreted as follows: 13720