3. Materials used by SS Company in producing Division C's product are currently purchased from outsidesuppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A hasunused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. Atransfer price of $9.50 per unit is negotiated and 30,000 units of material are transferred, with no reduction inDivision A's current sales. How much would SS's total income from operations increase?
(A). $45,000
(B)$120,000
(C). $60,000
(D).$150,000