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please explain the steps in the answer :) A Division of...

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Accounting

please explain the steps in the answer :)
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A Division of the ABC Company produces part XYZ that can be sold to outside customers or sold to the Q Division of the Company. Last year, the Q Division bought all of its 12,000 XYZ parts from the A Division at $2.75 each. Additional available information is: Capacity in of XYZ Parts 250,000 Selling Price per Part to Outside Customers $3.50 Variable Costs per Part $1.30 Fixed Costs, Total (Will not change) $90,000 A division can sell 245,000 XYZ parts to external customers. Additionally a third party supplier is willing to supply Q Division with all 12,000 parts for a $2.50 each. If the parts are purchased externally, what is the impact on the overall operating income of ABC Company

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