=+19-37 KK Transfer pricing, goal congruence, ethics OBJECTIVES 7, 8 Jupiter Ltd manufactures high-grade aluminium luggage made from recycled metal. The company operates two divisions: Metal Recycling and Luggage Fabrication. Each division operates as a decentralised entity. The Metal Recycling Division is free to sell sheet aluminium to outside buyers and the Luggage Fabrication Division is free to purchase recycled sheet aluminium from other sources.

Currently, however, the Recycling Division sells all of its output to the Fabrication Division, and the Fabrication Division does not purchase materials from any outside suppliers.