Decision on transfer pricing

Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $$1,350$ per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $$900$ per unit.

Assume that a transfer price of $$1,200$ has been established and that $75,000$ units of materials are transferred, with no reduction in the Components Division's current sales.

a$.$ How much would Ziegler Inc.$\text{'}$s total operating income increase?

fill in the blank $1$ of $1$$

b$.$ How much would the Instrument Division's operating income increase?

fill in the blank $1$ of $1$$

c$.$ How much would the Components Division's operating income increase?

fill in the blank $1$ of $1$$

d$.$ Any transfer price will cause the total income of the company to fill in the blank $1$ of $2$

$,$ as long as the supplier division capacity is fill in the blank $2$ of $2$

toward making materials for products that are ultimately sold to