The materials used by the Winston-Salem Division of fox company are currently purchased from outside suppliers at $32 per unit. These same materials are produced by Foxs Flagstaff division. The flagstaff division can produce the materials needed by the Winston-Salem Division ar a variable cost of $15 per unit. The division is currently producing 91,000 units and has capacity of 130,000 units. The two divisions have recently negotiated a transfer price of $23 per unit for 39,000 units.

By how much will each divisions income increase as a result of this transfer?

Winston-Salem Division $_______

Flagstaff Division $_______