Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. 27. How much would Division 3's income from operations increase? a. $150,000 b. $50,000 c. $32,000 d. $72,000 How much would Division 6's income from operations increase? a. $8,000 b. $15,000 c. $80,000 d. $150,000 28. 29. How much would Square Yard Products total income from operations increase? a. $32,000 b. $112,000 c. $80,000 d. $150,000 ABC Corporation has three service departments with the following costs and activity base: Service Department Graphics Production Accounting Cost | # of invoices processed # of employees $500,000 Personnel Department $400,000 ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows: Micro Macro Su 850,000-50,000 Direct Revenues 700,000 50,000 20,000 700 $70,000 30,000 800 $100,000 50,000 500 # of copies made invoices processed ofemployees What is the service department charge rate for Graphics Production? a. $2.00 b. $10.00 C. $6.66 d. $.50 30