2. Materials used by Meeta-Products Inc. in producing Division A's product are currently purchased from outside suppliers at a cost of $12 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $7 per unit. A transfer price of $9 per unit is established, and 35,000 units of material are transferred with no reduction in Division B's current sales. How much would Meeta-Products total operating income increase?

a		$70,000
b		$175,000
c		$105,000
d		$100,000