Transfer Pricing

Hi ,
Could you kindly explain how to work out the following question?

Oxco has 2 divisions, A & B. Div A makes a component for air conditioning which it can only sell to div B. it has no other outlet for sales.

Current information relating to div A is as follows:

Marginal cost per unit £100
Transfer price £165
Total production & sales of the component each year 2200 units
specific fixed costs of div A per year £10 000

Cold co has offered to sell the component to div b for £140 per unit.If B accepts the offer, div a will be shut.

If div B accepts Cold co’s offer, what will be the impact on profits per year for the group as a whole ?

Thanks