Materials used by the Instrument Division of Ziegler Inc are currently purchased from outside suppliers at a cost of $ 3 3 2 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 $ 2 7 6 per unit Assume that a transfer price of $ 3 1 5 has been established and that 3 9 , 0 0 0 units of materials are transferred, with no reduction in the Components Division's current sales a How much would Ziegler Inc ' s total operating income increase $ b How much would the Instrument Division's operating income increase c How much would the Components Division's operating income increase $

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Materials used by the Instrument Division of Ziegler Inc  are currently purchased from outside suppliers at a cost of $ 3 3 2 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 $ 2 7 6 per unit  Assume that a transfer price of $ 3 1 5 has been established and that 3 9 , 0 0 0 units of materials are transferred, with no reduction in the Components Division's current sales  a   How much would Ziegler Inc  ' s total operating income increase  $ b   How much would the Instrument Division's operating income increase  c   How much would the Components Division's operating income increase  $

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Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $ 3 3 2 per unit.

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