The materials used by the North Division of Zhang Company are currently purchased from outside suppliers at $96 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 $79 per unit. The division is currently producing 630,000 units and has capacity of 750,000 units. The two divisions have recently negotiated a transfer price of $88 per unit for 72,000 units. By how much will each division's income increase as a result of this transfer? South Division North Division $ $

The materials used by the North Division of Zhang Company are curtently purchased from outside suppliers at s96 per unit. These same materiais are preduced by Zhang's South Division. The South Division can produce the materials needed by the North Division at a variable cost of $79 per unit. The division is currently producing 630,000 units and has capacity of 750,000 units. The two divisions have recently negotiated a transfer price of t.88 per unit for 72,000 units By how much will each division's income increase as a result of this transfer? South Division North Division The materials used by the North Division of Zhang Company are curtently purchased from outside suppliers at s96 per unit. These same materiais are preduced by Zhang's South Division. The South Division can produce the materials needed by the North Division at a variable cost of $79 per unit. The division is currently producing 630,000 units and has capacity of 750,000 units. The two divisions have recently negotiated a transfer price of t.88 per unit for 72,000 units By how much will each division's income increase as a result of this transfer? South Division North Division