The North Dakota Melting Inc. (NDMI) and South Dakota Building Inc. (SDBI) Divisions are in the same company. In the past the SDBI Division bought a part from the NDMI Division for $82 per unit. The NDMI Division has increased the price of the part to $100 per unit. SDBI Division can buy the part for $94 from an outside supplier. The cost data for the part obtained from the NDMI Division is below: Direct materials $25.50 Direct labor 32.50 Variable indirect production 22.50 Fixed indirect production 9.60 If NDMI division does not provide the parts to SDBI Division, it will save one-fourth of the fixed indirect production costs. The NDMI Division has excess capacity but no alternative uses of the facilities. By using 60% of their capacity to produce and sell to outside customers they have reached break-even already this year. Required: 1. From the standpoint of the company as a whole, should SDBI Division continue to buy the part from NDMI Division and why? (6 points) 2. From the standpoint of SDBI Division only, should SDBI Division continue to buy the part from NDMI Division and why? (6 points) 3. What would be the contribution margin for NDMI Division if they would sell to outside customers only? (3 points) The North Dakota Melting Inc. (NDMI) and South Dakota Building Inc. (SDBI) Divisions are in the same company. In the past the SDBI Division bought a part from the NDMI Division for $82 per unit. The NDMI Division has increased the price of the part to $100 per unit. SDBI Division can buy the part for $94 from an outside supplier. The cost data for the part obtained from the NDMI Division is below: Direct materials $25.50 Direct labor 32.50 Variable indirect production 22.50 Fixed indirect production 9.60 If NDMI division does not provide the parts to SDBI Division, it will save one-fourth of the fixed indirect production costs. The NDMI Division has excess capacity but no alternative uses of the facilities. By using 60% of their capacity to produce and sell to outside customers they have reached break-even already this year. Required: 1. From the standpoint of the company as a whole, should SDBI Division continue to buy the part from NDMI Division and why? (6 points) 2. From the standpoint of SDBI Division only, should SDBI Division continue to buy the part from NDMI Division and why? (6 points) 3. What would be the contribution margin for NDMI Division if they would sell to outside customers only? (3 points)