The Ryan Company manufacturers only one type of shoe and has two divisions, the Sole Division and the Assembly Division. The Sole Division manufactures soles and then "sells" them to the Assembly Division, which completes the shoes and sells them to retailers. The market price for the Assembly Division to purchase a pair of soles is $40. Fixed costs are per pair at 100,000 units. If the cost-based transfer price is 180% of variable costs, what is the transfer price per pair of soles from the Sole Division to the Assembly Division? a. $28.80 b. $25.20 c. $32.40 d. $57.60 Clear my choice Calculate and compare the difference in overall corporate net income between Scenario A and Scenario B if the Assembly Division sells 100,000 pairs of shoes for $120 per pair to customers. Scenario A: Negotiated transfer price of $30 per pair of soles Scenario B: Market-based transfer price a. \$1,000,000 more net income under Scenario A b. $1,000,000 of net income using Scenario B c. \$200,000 of net income using Scenario A d. The overall corporate net income would be the same under both scenarios. Clear my choice Assume the transfer price for a pair of soles is 180% of full costs of the Sole Division and 100,000 of soles are produced and transferred to the Assembly Division. The Sole Division's operating income is: a. $1,600,000 b. $1,800,000 c. $2,560,000 d. $3,600,000 Clear my choice If the Assembly Division sells 100,000 pairs of shoes at a price of $120 a pair to customers, what is the operating income of both divisions together? a. $8,800,000 b. $6,800,000 c. $6,000,000 d. indeterminable