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The matenals used by the North Division of Zhang Company are currently purchased from outside suppliers at $85 per unit. These same materials are produced

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The matenals used by the North Division of Zhang Company are currently purchased from outside suppliers at $85 per unit. These same materials are produced by Zhang's South Division. The South Division can produce the materials needed by the North Division at a variable cost of $46 per unit. The division is currently producing 119,000 units and has capacity of 170,000 units. The two divisions have recently negotiated a transfer price of $69 per unit for 51,000 units. By how much will each division's income increase as a result of this transfer? South Division North Division

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