Materials used by Square Yard Products Inc. in producing Division $3\text{'}$s product are currently purchased from outside suppliers at a cost of $$5\mathrm{.}00$ per unit. However, the same materials are available from Division $6.$ Division $6$ has unused capacity and can produce the materials needed by Division $3$ at a variable cost of $$3\mathrm{.}00$ per unit. A transfer price of $$3\mathrm{.}20$ per unit is established, and $40,000$ units of material are transferred, with no reduction in Division $6\text{'}$s current sales.

Square Yard Products Inc.$\text{'}$s total operating income will increase by

a$.$ $$112,000$

b$.$ $$80,000$

c$.$ $$32,000$

d$.$ $$150,000$