Decision on trensfer pricing Materials used by the Instrument Division of Zlegler Inc. are currentiy purchased from outside supplicis at a cost of $343 per unit. However, the same materlabs are avallable from the Components Division, The Components Division has unused capacity and can produce the materials needed by the Instrument Division at s variable cost of $28 s per unit. Assume that a transfer price of $326 has been established and that 40,600 units of materials are transferred, with no reduction in the Components Division's current sales. 9. How much would Ziegler Inci's total operating income increase? x b. How muth would the Instrument Division's operating income increase? I x c. How much would the Components Division's operating income increase? s x d. Any transfer price wil cause the total income of the company to materials for products that are uitimately sold to the outside. , as long as the supplier division capacity is toward making