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Branded Shoe Company manufactures only one type of shoe and has two division Assembly and Fishing The Assembly Division manufactures shoes for the Fishing Division

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Branded Shoe Company manufactures only one type of shoe and has two division Assembly and Fishing The Assembly Division manufactures shoes for the Fishing Division After completing the pair of shoes Finishing sells then externally to retailer shoe stores for a price of $5 per pair of shoes. The Assembly Division transfers will shoes italy to Finishing Assembly were to externally, the price 540 per pat Assembly's costs per pair Direct materials Direct labor Variable overhead Division fored costs $10 58 $4 $14 Finishing's costs per part Direct materials Direct labor Variable overhead Division fixed costs S5 $.4 $12 Calculate and compare the difference in Banded Shoe Company's Operating income between Transfer Price scenarios A and the Assembly one 100.000 paso to the highes Scenario A Negotiated transfer price of $34 per par Scenario Market based transfer price per per

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