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Stavos Company's screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen follows: Variable cost per screen 124 Fixed cost per screen Total cost per screen 30* $154 "Based on a capacity of 750,000 screens 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 $195 per screen for all sales. The costs, revenue, and net operating income associated with the Quark Division's HDTV are given below Selling price per unit Variable cost per unit: 583 Cost of the screen $195 Variable cost of electronic parts 234 Total variable cost Contribution margin Fixed costs per unit Net operating income per unit 429 154 88* $ 66 "Based on a capacity of 170,000 units per year The Quark Division has an order from an overseas source for 5,400 HDTVs. The overseas source wants to pay only $406 per unit. Required 1. Assume the Quark Division has enough idle capacity to fill the 5,400-unit order. Is the division likely to accept the $406 price or to reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $406 price? 3. Assume 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. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $406 unit price Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $406 price? (Any "Financial Disadvantage" amounts should be entered as a negative.) Financial advantage (disadvantage) on a per unit basis

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