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Assume that the Molding Division makes 100,000 weight plates and transfers them to the Coating Division at an agreed upon transfer price. After completing the

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Assume that the Molding Division makes 100,000 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 100,000 plates to customers at $120 per plate. Compare the difference in overall corporate operating income of ABC Weightlifting between Scenario A and Scenario B below: Scenario A: agreed upon transfer price of $30 per weight plate Scenario B: agreed upon transfer price of $42 (the market price) per weight plate The net income would be the same under both scenarios $600,000 more operating income under Scenario A There is not sufficient information to answer the question O $1,200,000 more operating income under Scenario A O $1,200,000 more operating income under Scenario B

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