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Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $ 2 9 6 per unit.

Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $296 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 $246 per unit.
Assume that a transfer price of $281 has been established and that 40,900 units of materials are transferred, with no reduction in the Components Divisions current sales.
a. How much would Ziegler Inc.'s total operating income increase?
fill in the blank 1 of 1$
b. How much would the Instrument Division's operating income increase?
fill in the blank 1 of 1$
c. How much would the Components Division's operating income increase?
fill in the blank 1 of 1$

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