Branded Shoe Company manufactures only one type of shoe and hastwo divisions, the Stitching Division and the Polishing Division.The Stitching Division manufactures shoes for the PolishingDivision, which completes the shoe and sells it to retailers. TheStitching Division "sells"shoes to the Polishing Division. Themarket price for the Polishing Division to purchase a pair of shoesis $42. (Ignore changes in inventory.) ? Stitching's costs per pairof soles are: Direct materials $10 Direct labor $ 8 Variableoverhead $ 6 Division fixed costs $ 4 Polishing's costs percompleted pair of shoes are: Direct materials $14 Direct labor $ 6Variable overhead $ 4 Division fixed costs $16 7. Calculate andcompare the difference in overall corporate net income of BrandedShoe Company between Scenario A and Scenario B if the PolishingDivision sells 100,000 pairs of shoes for $120 per pair tocustomers. Scenario A: Negotiated transfer price of $30 per pair ofsoles Scenario B: Market-based transfer price A) $1,000,000 morenet income under Scenario A B) $1,000,000 of net income usingScenario B C) $200,000 of net income using Scenario A. D) The netincome would be the same under both scenarios. 8. Assume thetransfer price for a pair of shoes is 180% of total costs of theStitching Division and 40,000 of soles are produced and transferredto the Polishing Division. The Stitching Division's operatingincome is ________. A) $896,000 B) $720,000 C) $800,000 D) $880,0009. If the Polishing Division sells 100,000 pairs of shoes at aprice of $120 a pair to customers, what is the operating income ofboth divisions together? (Assume that the Stitching Division has noother customers) A) $8,800,000 B) $6,800,000 C) $6,000,000 D)$5,200,000