Question: Refer to the TK Electronics information in S8-15. If the Cell Phone Department needed 150,000 computer chips and current production in the Chips Department was

Refer to the TK Electronics information in S8-15. If the Cell Phone Department needed 150,000 computer chips and current production in the Chips Department was 300,000 chips, should a transfer take place? If so, at what price? (Note: For internal transfers, the selling and administrative costs are reduced to $0.25 per unit.)
What other qualitative factors might need to be considered?

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