Division a of Spangler Company Expects the Following Results Division B Has the Opportunity to Buy the 5,000 Units

Division A of Spangler Company expects the following results:
$\begin{array}{lcc}&\text { To Division B} &&\text {To Outsiders }\\ \text {Sales}(5,000 \times \$ 60)&\$300,000\\(\$ 25,000 \times \$ 72) & & \$ &1, 800,000\\\text { Variable costs at } \$ 36 &\underline{ 180,000} &&\underline{ 900,000 }\\ \text { Contribution margin } & \$ 120,000& \$ & 900,000 \\ \begin{array}{l}\text { Fixed costs, all common, allocated on the basis of} \\\text { relative units }\end{array} &\underline{ 60,000} & & \underline{300,000} \\ \text { profit } & \$60,000 & \$ & 600,000 \\\end{array}$
Division B has the opportunity to buy the 5,000 units it needs from an outside supplier at $45 each.
Required (consider each question independently):
(a) Division A refuses to meet the $45 price, sales to outsiders cannot be increased, and Division B buys from the outside supplier. Compute the effect on the income of Spangler Company.
(b) Division A cannot increase its sales to outsiders, does meet the $45 price, and Division B continues to buy from Division A. Compute the effect on the income of Spangler Company.