Questions 77, 78, and 79 employ the following data set: Materials used by the Rio Grande and Western Corporation in producing the Royal Gorge Division's a cost of $5 per unit. However, the same materials are available from Craig product are currently purchased from outside suppliers at IVIsion. Craig Division has unused capacity and can produce the materials needed by the Royal Gorge Division 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 Craig Division's current sales. 77. How much would Royal Gorge Division's income from operations inecrease a. $150,000 b. $50,000 c. $32,000 d. $72,000 78. How would Craig Division's income from operations increase? a. $8,000 b. $15,000 C. $80,000 d. $150,000 How much would Rio Grande and Western Corporation's total income from operations increase? a. $32,000 b. $112,000 c. $80,000 d. $150,000