QUESTION 2 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 ta 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's current sales, How much will Division 6's income from operations increase? $8.000 $15,000 $80,000 $150.000