Google Docs Cengage in BizCafe TopHat Ch 24 Decentralized Operations Decision on Transfer Pricing Materials used by the Instrument Division of T_Kong Industries are currently purchased from outside suppliers at a cost of $258 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 $214 per unit. 4 a. If a transfer price of $235 per unit is established and 25,400 units of materials are 3 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? 3i: c. How much would the Components Division's income from operations increase? > E ; Feedback