1. Decision on The price charged to one decentralized unit by another for the goods or services provided.Transfer Pricing

   Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $357 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 $296 per unit.

   a. If a transfer price of $325 per unit is established and 23,500 units of materials are transferred, with no reduction in the Components Divisions current sales, how much would T_Kong Industries total income from operations increase? $

   b. How much would the Instrument Divisions income from operations increase? $

   c. How much would the Components Divisions income from operations increase? $