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The materials used by the North Division of Zhang Compeny are currently purchased from outside suppliers at s62 por unit. These same materiais are produced

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The materials used by the North Division of Zhang Compeny are currently purchased from outside suppliers at s62 por unit. These same materiais are produced by Zhang's South Division. The South Division can produce the materiats needed by the North Division at a variable cost of $27 per unit. The. division is currently producing, 140,000 units and has capacity of 200,000 units. The two divisions have recently negotiated a transfer price af $38 per tinit for 60,000 units By how much will esch division's income increase as a resuit of this transfer? 50uth Division North Division

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