Transfer Pricing

The materials used by the North Division of Horton Company are currently purchased from outside suppliers at $73 per unit. These same materials are produced by Hortons South Division. The South Division can produce the materials needed by the North Division at a variable cost of $37 per unit. The division is currently producing 105,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $52 per unit for 45,000 units.

By how much will each division's income increase as a result of this transfer?

South Division	$fill in the blank
North Division	$fill in the blank