Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much will Division 6's income from operations increase? 3. $80,000 b. $8,000 c. $15,000 d. $150,000 ulator Standard costs are divided into which of the following components? a. materials standard and labor standard b. quality standard and quantity standard c. variance standard and quantity standard d. price standard and quantity standard Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $58 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? a $58 per pound b. $30 per pound c. $28 per pound Cd. $23 per pound Delaney Company is considering replacing equipment which originally cost $516,000 and which has $361,200 accumulated depreciation to date. A new machine will cost $778,000. What is the sunk cost in this situation? a $123,840 b. $623,200 c. $516,000 Cd. $154,800