Materials used by Meeta-Products Inc. in producing Division A's product are currently purchased from outside suppliers at a cost of $12 per unit. However, the same materials are available from Division B. Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $7 per unit. A transfer price of $9 per unit is established, and 35,000 units of material are transferred with no reduction in Division B's current sales. How much would Division A's operating income increase?

a.$105,000

b.$175,000

c.$75,000

d.$70,000