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 $290 per unit. Assume that a transfer price of $332 has been established and that 29,200 units of materials are transferred, with no reduction in the Components Division's current sales. a. How much would T_Kong Industries' total income from operations increase? b. How much would the Instrument Division's income from operations increase? x c. How much would the Components Division's income from operations increase? 4 d. Any transfer price will cause the total income of the company to , as long as the supplier division capacity is toward making materials for products that are ultimately sold to the outside. Findback r Check My Work a-c. Total income from operations increases by the difference of the market price less the variable cost multiplied by the number of units transferred. Multiply the units transferred by the difference between the transfer price and the variable cost per unit (supplying company) or the market price and the transfer price (purchasing company). d. Consider the effect of setting a transfer price outside the acceptable range