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Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $307 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $255 per unit. a. If a transfer price of $279 per unit is established and 39,500 units of materials are transferred, with no reduction in the Components Division's current sales, how much would XPort Industries' total income from operations increase? b. How much would the Instrument Division's income from operations Increase? c. How much would the Components Division's income from operations increase? KPr Previous Next Check My Work 5 more Check My Work uses remaining R 9:26 AM 5/3/2019 19 ork Print Item Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS Service Category Help desk Network center Electronic mail Smartphone support Number of smartphones issued One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: . The sector has 4,000 employees, of whom 30% are office employees Budgeted Activity Base Quantity Activity Base Number of calls Number of devices monitored Number of user accounts Budgeted Cost $79,500 541,125 52,800 111,360 2,500 9,250 6,600