Division A of Aztec Manufacturing purchases materials to be used in production from an outside supplier for $20 per unit. The same materials are produced by Division B. Division B incurs variable costs of $10 per unit. Currently, Division B is able to sell only 320,000 units to outside buyers out of 400,000 units produced. In this situation, if a transfer price of $18 per unit is established between the two divisions and 80,000 units of materials are transferred to Division A, by what amount would Division B's operating income increase? a.$160,000 b.$960,000 c.$640,000 d.$800,000
