Materials used by jefferson company in producing division c's product are currently purchased from outside suppliers at a cost of $10.00 per unit. however, the same materials are available with division a. division a has unused capacity and can produce the materials needed by division c at a variable cost of $8.50 per unit. a transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in division a's current sales. how much will division a's income from operations increase? a. $50,000 b. $25,000 c. $0 d. $75,000
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