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Wiring used by the Appliance Division of Kaufman Manufacturing is currently purchased from outside suppliers at a cost of $25 per unit. However, the same

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Wiring used by the Appliance Division of Kaufman Manufacturing is currently purchased from outside suppliers at a cost of $25 per unit. However, the same materiais an avallable from the Electronic Division. The Electronic Division has unused capacity and can produce the materials needed by the Appilance Division at a variable cost of 420 per unit. Assume that a transfer price of $22 has been established and that 150,000 tinits of materiais are transferred, with no reduction in the Electronic Division's current sales, a. How much would Kaufman Manufacturing's total operating income increase? b. How much would the Appliance Division's operating income increase? C. How much would the Electronic Division's operating income increase? d. If the negotlated price approach is used, what would be the range of acceptable transfer prices and why? The transfer prices should be between yariable cost and market price when the supplier diviston has excess capacity in order to give the diviston managet

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