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Decision on Transfer Pricing Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $284 per

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Decision on Transfer Pricing Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $284 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 $236 per unit. a. If a transfer price of $258 per unit is established and 48,000 units of materials are transferred, with no reduction in the components Division's current sales, how much would T_Kong 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

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