Decision on Transfer Pricing Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside supplers at a cost of $429 per unit. However, the same materiais 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 $356 per unit. Assume that a transfer price of $408 has been established and that 34,300 units of materials are transferred, with no reduction in the Components Division's current sales: a. How much would Ziegler Incis total operating income increase? b. Haw much would the fnstrument Division's operating income increase? c. How much would the Components Division's operating income increase? d. Any transfer price will cause the total income of the company to 1. as long as the supplier division capacity is toward making materials for products that are ultimately sold to the outside