Total factor productivity will increase if the company uses more total inputs per output O the company incurs fewer costs per input current technology becomes obsolete technical productivity occurs 4 35 1 . 4 Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoes and sells them to retailers. The Stitching Division "sells" shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $51. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-110,000 units. The fixed costs for the Polishing Division are assumed to be $20 per pair at 110,000 units Stitching 's costs per pair of shoes are Direct materials Direct labor $15 $13 $11 $9 Variable overhead Division fixed costs Polishing 's costs per completed pair of shoes are $14 $9 $8 $21 Direct materials Direct labor Variable overhead Division fixed costs Assume the transfer price for a pair of shoes is 185 % of total costs of the Stitching Division and 40,000 of shoes are produced and transferred to the Polishing Division. The Stitching Division's operating income is $1,320,000 O Type here to search Lenovo C $1,120,000 $1,632.000 $1.400.000