Question: Decision on Transfer Pricing Instrument Division at a variable cost of $335 per unit. Assume that a transfer price of $384 has been established and

 Decision on Transfer Pricing Instrument Division at a variable cost of

Decision on Transfer Pricing Instrument Division at a variable cost of $335 per unit. Assume that a transfer price of $384 has been established and that 42,800 units of materials are transferred, with no reduction in the Components Divis current sales. a. How much would Ziegler Inc.'s total operating income increase? $ b. How much would the Instrument Division's operating income increase? $ C. How much would the Components Division's operating income increase? $ d. Any transfer price will cause the total income of the company to , as long as the supplier division capacity is toward making materials for products that are ultimately so the outside

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