C Decision on transfer pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $188 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 $156 per unit. Assume that a transfer price of $179 has been established and that 27,100 units of materials are transferred, with no reduction in the Components Division's current 2. How much would Port 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? d. Any tranfer price will cause the total income of the company to making materials for products that are ultimately sold to the outside as long as the supplier division capacity is toward