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Assume that the Molding Division makes 1 , 0 0 0 weight plates and transfers them to the Coating Division at an agreed upon transfer
Assume that the Molding Division makes weight plates and transfers them to the Coating Division at an agreed upon transfer price.After completing the coating process, the Coating Division then sells the plates to customers at $ per plate. Compare the difference in overall corporate operating income of ABC between Scenario A and Scenario B below:Scenario A: agreed upon transfer price is $ per weight plateScenario B: agreed upon transfer price is $the market price per weight plate $ more operating income under Scenario A The net income would be the same under both scenarios There is not sufficient information to answer the question $ more operating income under Scenario
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