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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

Decision on Transfer Pricing
Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $259 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 $215 per unit.
a. If a transfer price of $236 per unit is established and 35,600 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?
$fill in the blank 1
b. How much would the Instrument Divisions income from operations increase?
$fill in the blank 2
c. How much would the Components Divisions income from operations increase?
$fill in the blank 3

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