question content area 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 from 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. jefferson company's total operating income will increase by a. $150,000 b. $37,500 c. $100,000 d. $62,500
