The Machining division of Mazda manufactures parts that are sold to the assembly division. These parts can also be sold to external customers. You are given the following information: To Assembly Division To External Customers Total Sales 600,000 parts x $8.00 $4,800,000 400.000 parts x $9.00 at $3.75 per part Variable Expenses Contribution Margin Fixed Expenses Net income (2.250.000) 2.550,000 (1:350.000). $1.200,000 $3,600,000 (1.500.000) 2.100,000 (900.000). $1,200,000 $8.400.000 (3.250.000 4,650,000 (2.250.000). $2.400,000 An external buyer has offered to supply the parts to the Assembly division for $5.50 each. The Machining department is worried about having excess capacity if the Assembly division accepts this all as the Machining department can only sell 400,000 parts to its external customers. Required: Can the Machining department match the $5.50 price and still show a net profit for their sales to the Assembly division? if the fixed costs are unable to be changed in total, should the Machining department match the $5.50 price? Show your calculations on your separately-submitted workpaper.