Based on Kaufman Manufacturing's data in Exercise 14-17, assume that a transfer price of $22 has been established and that 150,000 units of materials 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 negotiated price approach is used, what would be the range of acceptable transfer prices and why?