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Materials used by the Instrument Dovilon of Ziegier the. are currently purchased from outside suppliers at a colt of $402 per unit. However, the same

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Materials used by the Instrument Dovilon of Ziegier the. are currently purchased from outside suppliers at a colt of $402 per unit. However, the same materials are Wailable frem the Compsnents Oivisinn. The Components bivian has urused capacily and can produce the materals needed by the Instrument Divisien at a variable cast of $334 per unit Assume that a transter phce of 3382 nos been establahed and that 23,900 units of materials are transferred, with no reduction in the Components Dividion current sales a. How midv would ziegler Inc. stotat egerating income increase? b. bew moxi woud the instrument Divsibn's operating incame lecrease? c. Hein much would the components Division's bpetating inceme increase? 6. May transter price wull cause the torai incbime of the cogreawy to d, as lang at the swoper divition capacty is t toward makig marenisis for probutis thet are bitimately sid to the sutude. variabis cost, ar the market price and trander cost. Then, mutiphr the deference by the unas tranderved a. Convider the iffect of setting a transter price outade the acepplable tange

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