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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 1,000 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 1,000 plates to customers at $120 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 $36 per weight plateScenario B: agreed upon transfer price is $42(the market price) per weight plate $6,000 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 $6,000 more operating income under Scenario
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